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5 April 2023
Omaha Man Sentenced for Distributing Child PornographyRead the Press Release
United States Attorney Steven A. Russell announced that Michael Dickmeyer, 24, was sentenced today in federal court in Omaha for distribution and receipt of child pornography. The Honorable Brian C. Buescher sentenced Dickmeyer to 96 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Dickmeyer will serve 5 years of supervised release. Dickmeyer was also ordered to pay $21,000 in restitution.
In October 2021, law enforcement began investigating after receiving a Cybertip from Twitter stating that a user had uploaded child pornography. Investigators contacted Dickmeyer who admitted to accessing, viewing, and trading images and videos of child pornography online. Investigators searched Dickmeyer’s cell phone and observed more than 700 images and videos of child pornography on the device.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Nurse Practitioner Sentenced in Twelve Million Dollar Health Care Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A registered nurse and nurse practitioner, who defrauded commercial health insurers and Medicare of nearly $12 million by devising and executing fraudulent billing schemes in three states seeking payment for patient services that were never performed, has been sentenced to seven years in federal prison, announced United States Attorney Zachary A. Cunha.
Alexander A. Istomin, 57, pleaded guilty in October 2022 to an eleven-count Information charging him with health care fraud, mail fraud, aggravated identity theft, and causing the introduction of misbranded drugs into interstate commerce. Istomin admitted that he routinely submitted fraudulent claims for in-person patient services that he did not perform, including supposed patient visits at a “ghost office” in Rhode Island and at offices in Florida and New York. Istomin used seven different tax identification numbers while defrauding eight insurers out of a total of $11,923,686.30.
The “ghost office” was an address that Istomin maintained in East Greenwich, Rhode Island, that he claimed was part of his medical practice when, in fact, he used the location solely for the purpose of receiving mail, including fraudulently obtained insurance payments.
“By billing for services that he never performed, including at a Rhode Island location that was little more than a mail drop, Alexander Istomin thought he could make off with millions in taxpayer and insurance dollars that were meant to fund real medical care, for real people, all without consequence,” remarked U.S. Attorney Zachary Cunha. “He was very much mistaken. The sentence imposed reflects both this Office’s commitment to bring to justice individuals who perpetrate this kind of brazen fraud and abuse of our health care system, and should serve notice of the consequences for those who seek to enrich themselves through schemes like these.”
"The Office of Inspector General will continue to fervently pursue those who defraud the Medicare system. Greed, at the expense of our most vulnerable citizens, will not be tolerated," said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s sentencing is a strong reminder that we will spare no resource to bring to justice those that undermine the integrity of our federal health care system and those served by it.”
“Alexander Istomin went to great lengths to conceal his multi-state, multi-million-dollar health care fraud scheme, billing for services he never provided and patients he never saw. With the proceeds of his illegally gotten gains, he bought a million-dollar home in Florida and expensive cars. This sentence is more than just, given that this is not the first time Mr. Istomin has been accused of health care fraud, nor is it his first brush with the law,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The unscrupulous tactics he used to steal from taxpayers is what drives our investigators to combat healthcare fraud. After all, these taxpayer-funded programs are designed to provide essential medical services to the elderly and disadvantaged, not to enrich corrupt health care professionals and other fraudsters.”
According to documents and information provided to the court, in many instances, patients that Istomin claimed he met with in person were, in fact, out of the country at the time of the supposed visits. On other occasions that Istomin claimed to have been seeing patients, he himself was either in a different state or another country, often visiting his native Russia.
As part of his schemes, Istomin waived copayments for some Medicare patients, despite being aware that waiving copayments is prohibited. He did so to induce his patients not to report his fraudulent billing to Medicare. Additionally, Istomin used patient names and information to get prescriptions filled at various pharmacies and be returned to him. Istomin then distributed those drugs to individuals other than those in whose names the prescriptions were filled.
On Tuesday, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Istomin to 84 months of incarceration to be followed by three years of federal supervised release; to pay a fine of $30,000; and to pay restitution to Medicare and private insurers totaling $11,923,686.30.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan, with the assistance of Assistant U.S. Attorneys Milind M. Shah and Mary Rogers.
The matter was investigated the U.S. Department of Health and Human Services, Office of Inspector General; Federal Bureau of Investigation; and the Food and Drug Administration, Office of Criminal Investigations.
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North Carolina Men Sentenced to Prison for Transporting Fraudulently Obtained Phones Out of StateRead the Press Release
CHARLOTTE, N.C. – Two North Carolina family members, Lal H. Mahtani, 58, of Statesville and Vivek Ramesh Mahtani, 41, of Cornelius were sentenced yesterday in federal court before Judge Kenneth D. Bell for conspiring to transport fraudulently obtained and stolen new Apple iPhones and other electronic devices to buyers in other states and overseas, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Lal Mahtani received a sentence of 36 months followed by three years of supervised release. His nephew, Vivek Mahtani, received a sentence of 18 months, also followed by three years of supervised release.
Jason Byrnes, Special Agent in Charge of the United States Secret Service (USSS), Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to documents filed in the case, from 2018 through February 2020, the defendants worked together in a scheme to purchase new iPhones and other electronic devices from individuals who had obtained the devices through fraudulent means, often from wireless stores. The defendants purchased the new iPhones, which were frequently in their sealed packaging at prices substantially below their retail value. Many of the fraudulently obtained devices were purchased by Lal Mahtani at New York Styles, his retail store in Statesville.
The defendants transported the fraudulently obtained devices using a shipping company to other states, including California, Texas, New York, and Georgia, as well as overseas destinations, such as Hong Kong. Vivek Mahtani also sold many of the devices to Cellport, a Charlotte-based business owned and operated by Hamzeh Alasfar and Tayseer Alkhayyat. Alasfar and Alkhayyat pleaded guilty in Charlotte last month to related charges before Judge Bell.
According to filed documents, the defendants shipped more than 1,700 pounds of fraudulently obtained devices, resulting in financial losses that exceeded $1.5 million.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorney William T. Bozin of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Nonprofit owner charged with misappropriating funds as the fiduciary to a veteranRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Michael J. Missal, Inspector General of the Department of Veterans Affairs, announced that Faye Janzad made an initial appearance in federal court on April 5 on an indictment charging her with two counts of fiduciary misappropriation and two counts of making false statements. Janzad, 63, of Albuquerque, New Mexico, will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Janzad on March 21. According to the indictment, Janzad was the owner and director of Veterans Independent Living of Albuquerque (VILA), a nonprofit company that provides housing and services to veterans at various levels of care. In January 2018, Janzad was appointed to serve as the fiduciary to a disabled veteran under VILAs care. At that time, two cashier’s checks in the amount of $20,360.26 and $143,002.77 were dispersed from the veteran’s prior fiduciary to Janzad. Rather than deposit the checks into the veteran’s beneficiary account, Janzad deposited both checks into VILA’s corporate bank account.
In Oct. and Nov. of 2018, the VA asked Janzad to provide bank statements showing the disposition of the veteran’s money. Instead, Janzad led the VA to believe that she had invested the veteran’s money in a mortgage on a VILA property, earning 5% interest. In Dec. 2018, Janzad recorded a mortgage with Bernalillo County which purported to grant the veteran an interest in a property, though the mortgage erroneously referred to a property that was not owned by VILA but had been owned by one of VILA’s other clients. Shortly after, the VA removed Janzad as fiduciary for the veteran and demanded that she forward all monies to the successor fiduciary. Janzad never fixed the faulty mortgage, never made any payments on the mortgage, and never forwarded the veteran’s funds to his successor fiduciary.
During the investigation, Janzad provided the Department of Veterans Affairs with a Fiduciary Statement of Account that omitted any mention of the veteran’s $163,363, and she knowingly made false, fictitious, and fraudulent statements to VA personnel.
“The charges announced today are an important step in seeking justice for a veteran who was allegedly defrauded by their VA-appointed fiduciary,” said Special Agent in Charge Rebeccalynn Staples with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “The VA OIG appreciates the support of the US Attorney’s Office for their efforts in prosecuting this case.”
“We honor our nation’s veterans not just with words but with action,” said United States Attorney Alexander M.M. Uballez. “A disabled veteran is not a mortgage loan bank, and should not be treated as such. My office will fight to protect those who fought to protect us.”
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Janzad faces up to 5 years in prison as to each count in the indictment.
The Criminal Investigators Division of the US Department of Veterans Affairs, Office of Inspector General investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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New Orleans Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – DEDRA BRIGHT (“BRIGHT”), age 64, of New Orleans, Louisiana, pled guilty today to theft of government funds, in violation of Title 18, United States Code, Section 641, announced United States Attorney Duane A. Evans
According to court documents, from November 2008 to November 2020, BRIGHT knowingly accessed and converted approximately $194,127.80 in Social Security Administration and $1,200 in Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.
U.S. District Court Judge Ivan L. R. Lemelle set sentencing for July 5, 2023. At sentencing, BRIGHT faces up to ten years in prison, a fine of up to $250,000 or twice the gain to the defendant or loss to any person, a term of supervised release of up to three years following any term of imprisonment, and a mandatory special assessment fee of $100.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas Moses, Health Care Fraud Coordinator and Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
New Braunfels Men Plead Guilty to Selling Misbranded DrugsRead the Press Release
SAN ANTONIO – Two New Braunfels men pleaded guilty in a federal court in San Antonio to selling non-controlled but dangerous substances through the mail.
According to court documents, Evan Asher Field, 42, and Michael Dominic Diaz, 30, purchased bulk quantities of various drugs, including synthetic opioids and benzodiazepines, and re-sold them through a website Field created in September 2019. The drugs, most of which originated in China and were not regulated or approved for any use by the FDA, can potentially cause toxic and fatal overdoses if consumed by humans. The two defendants, assisted by employee co-conspirators, repackaged the drugs into consumer-size containers and shipped them to various locations throughout the United States. The initial website remained online until September 2021, when Diaz launched a second website offering a nearly identical service. Despite disclaimers on the website and product packaging stating “for research purposes only,” and “not for human consumption,” the two defendants were aware that customers were purchasing the substances for personal use and consuming the drugs.
Field pleaded guilty on March 28 to conspiracy to defraud the United States and traffic in misbranded drugs. Diaz pleaded guilty on April 4 to the same charge. They each face a maximum penalty of five years in prison and are scheduled to be sentenced on Aug. 8, 2023. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas; Associate Commissioner for Regulatory Affairs Judy McMeekin, Pharm.D., for the U.S. Food and Drug Administration; and Special Agent in Charge Daniel Comeaux for the Drug Enforcement Administration’s Houston Field Office made the announcement.
The FDA and DEA are investigating the case. This case was prosecuted utilizing resources from the Dark Market and Digital Currency Crimes (DMDCC) Task Force. The DMDCC Task Force is a joint effort between the U.S. Attorney’s Office, HSI – Baltimore, the U.S. Secret Service, the U.S. Postal Inspection Service; the Food and Drug Administration, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the Defense Criminal Investigative Service, the Baltimore Police Department, and the Baltimore County Police Department, targeting the use of dark net marketplaces and digital currencies to facilitate criminal activities.
Assistant U.S. Attorneys Justin Chung and Amy Hail are prosecuting the case.
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National Police Agency of Japan visits INTERPOL WashingtonRead the Press Release
WASHINGTON - Yesterday, a delegation from the National Police Agency (NPA) of Japan met with INTERPOL Washington Director Michael A. Hughes to expand partnership opportunities between the two law enforcement agencies.
“This historic visit is a reflection of the strength of our relationship with our Japanese counterparts," said Dir. Hughes. "By working together, we can leverage our collective expertise, resources, and networks to better identify, prevent, and respond to global threats. We look forward to continuing our work together to protect our communities and prevent crime, anywhere it may occur."
During the meeting, the delegation from Japan and Dir. Hughes discussed issues of mutual interest, including collaborative strategies against transnational organized crime and cybercrime. They also explored ways to strengthen information sharing and global law enforcement cooperation.
A component of the U.S. Department of Justice co-managed by the U.S. Department of Homeland Security, INTERPOL Washington—the U.S. National Central Bureau (USNCB)—is the designated U.S. representative to INTERPOL. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, tribal, and territorial law enforcement agencies.
Nampa Man Sentenced to 25 Years in Federal Prison for Producing Child PornographyRead the Press Release
BOISE – Troy Groene, 48, of Nampa, Idaho, was sentenced to 300 months in federal prison for sexual exploitation of a child, U.S. Attorney Josh Hurwit announced today. Senior U.S. District Judge B. Lynn Winmill described Groene as a sexual predator. Many of Groene’s victims appeared in court. Judge Winmill praised them as “heroes” and “brave young women” for their courage in coming forward and holding Groene accountable for his crimes.
According to court records, the investigation began when the Nampa Police Department (Nampa PD) received information that Groene had committed a sexual assault. During the course of that investigation, Nampa PD learned that Groene also had sexual contact with a 16-year-old female. Nampa PD obtained a state search warrant for Groene’s cellphone and cloud storage account and located explicit videos that Groene had produced of the 16-year-old victim. During a search of Groene’s cloud storage account, Nampa PD also located explicit videos that Groene had produced of a 17-year‑old female. During the investigation, two additional 17-year-old females disclosed that Groene had engaged them in sexual contact and produced explicit videos of them.
Judge Winmill also sentenced Groene to a lifetime of supervised release. As part of the plea agreement entered earlier in the case, Groene was ordered to forfeit a truck he used to meet with some of the victims and $660,787.84 in proceeds from the sale of his house where he had met with some of the victims. Groene alo was ordered to pay $200,000 in restitution to the victims and will be required to register as a sex offender as a result of the conviction
“I agree with the Court that the victims in this case are heroes,” said U.S. Attorney Hurwit. “As we observe Sexual Assault Awareness Month this month, we should recognize the importance of creating spaces where victims—like the brave young women in this case—feel safe to report any form of sexual abuse or sexual exploitation. And we must rededicate ourselves to supporting the victims of these reprehensible crimes.”
U.S. Attorney Hurwit commended the cooperative efforts of the Nampa Police Department, Homeland Security Investigations, and the Idaho Internet Crimes Against Children Task Force, which led to the charges in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Morris County Man Admits Posing as Woman to Induce Dozens of Minors to Send Sexually Explicit Pictures and VideosRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man who was employed by a New Jersey elementary school and helped run a youth soccer club today admitted producing and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Steven Brooks, 36, of Morristown, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of production of child pornography and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In January 2021, law enforcement officers were notified about possible child pornography on an external hard drive belonging to Brooks. Pursuant to judicially authorized search warrants, law enforcement officers searched Brooks’ external hard drive, electronic devices and social media accounts. Brooks utilized a fake online persona on social media platforms to solicit photos and videos from dozens of minors that depicted the minors engaging in sexual activity. Brooks acknowledged, as relevant conduct, the attempted online enticement, production and possession of child pornography involving at least 70 victims.
The production of child pornography charge carries a statutory minimum sentence of 15 years in prison and a maximum of 30 years in prison; the possession of child pornography charge carries a maximum sentence of 10 years in prison. Each charge also includes a maximum fine of $250,000. Sentencing is scheduled for Sept. 21, 2023.
U.S. Attorney Sellinger credited special agents and members of the Child Exploitation Human Trafficking Task Force of the Newark field office of the FBI, under the direction of Special Agent in Charge James E. Dennehy, as well as special agents from the FBI’s San Francisco field office, under the direction of Special Agent in Charge Robert K. Tripp, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
brooks.information.pdfMississippi Landman Pleads Guilty to Submitting False Corporate Tax ReturnRead the Press Release
A Jackson, Mississippi, landman pleaded guilty today to submitting a false tax return on behalf of his business, Gulf States Royalty, Ltd.
According to court documents and statements made in court, Jeffrey Randall owned and operated an oil and gas lease company, Gulf States Royalty, Ltd. After informing his return preparer that he was unwilling to pay the tax he owed on the $3 million dollars earned by Gulf States in 2008, Randall and his preparer reported more than $2 million dollars in false business expenses on Gulf States’s 2008 corporate income tax return (Form 1120). Randall then signed the false return and directed his tax return preparer to submit it to the IRS. In total, Randall caused a tax loss to the IRS of $824,036.72.
Randall is scheduled to be sentenced on July 26 and faces a statutory maximum of three years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Richard (R.J.) Hagerman of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi are prosecuting the case.
Middle Georgia Meth Trafficking Leader Sentenced to 35 Years ImprisonmentRead the Press Release
MACON, Ga. – The leader of an armed drug trafficking organization responsible for distributing approximately 16 kilograms of methamphetamine into Middle Georgia was sentenced to 35 years in prison.
Ontarrio Veal aka “Torrie,” 33, of Warner Robins, was sentenced to serve 420 months in prison to be followed by four years of supervised release by U.S. District Judge Tilman E. “Tripp” Self, III on April 4, after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Nov. 15, 2022. There is no parole in the federal system.
“Ontarrio Veal brazenly ran an armed criminal organization that pushed a significant amount of methamphetamine into Warner Robins and surrounding communities,” said U.S. Attorney Peter D. Leary. “He is now held to account through the hard work of our prosecutors, working alongside our Organized Crime Drug Enforcement Task Force partners.”
“This investigation deals a fatal blow to a once-thriving ‘meth’ ring,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “With the leader now behind bars for a long time, the citizens of Warner Robins and elsewhere can rest assured that their communities are much safer today thanks to the outstanding case work by DEA and our local law enforcement partners.”
“ATF considers the Organized Crime Drug Enforcement Task Force a critical partner in its long-term mission of removing armed gangs, criminals and narcotics traffickers from our communities,” said Assistant Special Agent in Charge Beau Kolodka, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Atlanta Field Division.
“The Warner Robins Police Department is honored to have worked in conjunction with our federal partners through the Organized Crime Drug Enforcement Task Force which resulted in the outcome of this case,” said Assistant Chief Wayne Fisher, Warner Robins Police Department. “It is through such local, state and federal partnerships that impacts such as these can be realized. It was with great work and effort from the men and women of this task force which resulted in these arrests that will have an immeasurable impact for the good of our shared communities.”
According to documents and other evidence admitted into court, Drug Enforcement Administration (DEA) agents and Warner Robins Police Department officers investigated Veal’s Warner Robins-based drug trafficking organization from Jan. to June 2020. Law enforcement obtained court orders to intercept the phone calls and text messages from Veal’s and co-defendant Tamara Hall’s cell phones. Agents learned that Veal was a multi-kilogram methamphetamine dealer and surveilled Veal and various co-defendants conducting methamphetamine transactions and traveling to Atlanta to purchase large quantities of methamphetamine.
Veal was taken into custody in June 2020, on a return trip from Atlanta in possession of three kilograms of methamphetamine and a Glock .40 caliber semi-automatic pistol with a 50-round drum magazine. Agents executed search warrants at various locations in Middle Georgia, seizing multiple firearms and ammunition, methamphetamine and more than $100,000 cash. The organization is responsible for distributing more than 16 kilograms of methamphetamine.
Nine additional co-defendants have pleaded guilty and/or been sentenced as a result of this case:
Matthew Kay, 36, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Sept. 6, 2022, and was sentenced to serve 235 months in prison to be followed by four years of supervised release to run consecutively to three sentences he is currently serving in Houston County, Georgia, on Jan. 19.;
Reginald Lowe, 41, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Aug. 30, 2022, and was sentenced to serve 240 months in prison to be followed by four years of supervised release to run consecutively to a state sentence he is currently serving in Houston County, Georgia, for an aggravated assault conviction on Dec. 6, 2022;
Milton Simmons aka Mann, 41, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 1, 2022, and was sentenced to serve 120 months on Jan. 10;
Donna Ussery, 31, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022, and was sentenced to serve 100 months in prison on Oct. 4, 2022;
Parsa Ervin, 45, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Aug. 30, 2022, and was sentenced to serve 57 months in prison to be followed by one year of supervised release to run consecutively to any term of imprisonment that may be imposed in three separate cases in Houston County on Jan. 19.;
Marquell Gaines aka Paris, 38, of Warner Robins, pleaded guilty to use of a communication facility to conspire to possess with intent to distribute methamphetamine on July 19, 2022, and was sentenced to serve 48 months in prison on Oct. 11, 2022;
Tamara Hall, 40, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022, and sentencing is scheduled for May 2;
Victor Mendoza, 34, of Warner Robins, pleaded guilty to conspiracy to possess with intent to drugs on Dec. 1, 2022, via a global plea agreement in the Southern District of Alabama and sentencing is scheduled for June 2; and
Eddie Linkhorn, 42, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Oct. 20, 2022, and sentencing is scheduled for June 6.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Warner Robins Police Department.
The case was prosecuted by Deputy Criminal Chief Will Keyes.
Marketing Firm Owner Charged with Tax Crimes and Bank FraudRead the Press Release
A federal grand jury in Greenbelt, Maryland, returned an indictment unsealed today charging a Maryland businessman with filing false income tax returns, theft of government funds, tax evasion, willful failure to file income tax returns and bank fraud.
According to the indictment, Orin Wayne Solomon of Glenn Dale, filed at least 15 false income tax returns between 2017 and 2022 on behalf of himself, his business and two trusts that he controlled. On these returns, Solomon allegedly sought nearly $65 million in refunds that he and his entities were not entitled to receive. After receiving one allegedly false trust tax return, the IRS issued a tax refund check for more than $10 million. Solomon allegedly used those funds to pay for cars, a house, silver coins and insurance policies.
The indictment further alleges that Solomon attempted to evade his income tax liabilities for numerous years between 2009 and 2021 by, among other means, using funds from a business bank account to pay personal expenses for himself, his wife and his children, registering a vehicle in the name of a trust and transferring his personal residence to another trust. The personal expenses that Solomon allegedly paid from his business bank account included tuition for his children, personal training sessions, medical and dental expenses and expenses relating to his personal residence and a property that his wife owned. From 2017 through 2021, Solomon also allegedly failed to file individual income tax returns and pay taxes on income generated by his business, Anjacor Marketing Inc. (Anjacor).
The indictment also charges that in 2020, Solomon applied for a loan on behalf of Anjacor under the Small Business Administration’s Paycheck Protection Program (PPP), an initiative authorized by Congress to provide financial assistance to businesses impacted by the COVID-19 pandemic. As part of that application, Solomon allegedly provided a bank with false information about his company’s payroll, fraudulently causing the bank to extend a $229,012 PPP loan.
If convicted, Solomon faces a maximum penalty of 30 years in prison on the bank fraud charge, 10 years in prison on the theft of government funds charge, five years in prison on each of the tax evasion charges, three years in prison on each of the false return charges, and one year in prison on each of the failure to file charges. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Who Possessed Child Pornography Sentenced to over Five Years in PrisonRead the Press Release
A man who possessed over 3,500 photographs and 25 videos of child pornography was sentenced today to more than 5 years in federal prison.
Jeff Gruber, age 60, from Sumner, Iowa, received the prison term after an October 13, 2022 guilty plea to possession of child pornography.
At the guilty plea, Gruber admitted he possessed child pornography on his computer between November 2016 and March 2017.
Gruber was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gruber was sentenced to 63 months’ imprisonment. He was also ordered to make restitution. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Gruber is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by Homeland Security Investigations, the Iowa Division of Criminal Investigation and the Sumner Police Department..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-cr-2054.
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MS-13 Member Sentenced to Life in Prison for Kidnapping and MurderRead the Press Release
FRESNO, Calif. — Israel Alberto Rivas Gomez, 28, a citizen of El Salvador residing in Mendota, was sentenced today to life in prison for kidnapping and murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.
“Excellent law enforcement work led to the arrest of 25 individuals associated with the MS-13 gang for criminal activity in California’s Central Valley,” said U.S. Attorney Talbert. “Rivas Gomez participated in the brutal murder of a 19-year old man. The murder was preplanned, carefully orchestrated, driven by allegiance to MS-13, and deserving of a life sentence. The U.S. Attorney’s Office is committed to dismantling criminal enterprises like MS-13 and to vindicating the rights of victims and seeking justice for their family members and loved ones.”
“The gruesome homicides that were committed to intimidate the community and further the efforts of MS-13 to exploit the community in Mendota exemplify why the FBI is deeply committed to working with our local, state, and federal law enforcement partners to disrupt the grip gangs attempt to have on our communities,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Law enforcement and the community must stand together against violent gangs to offer residents and their children a brighter future and today’s sentence demonstrates the success we can have when we work together to investigate and disrupt organizations determined to exploit our communities.”
“While nothing can erase the pain that family members experience when their loved one is kidnapped and murdered in cold blood, this investigation, prosecution, and sentencing goes a long way in obtaining justice,” said Homeland Security Investigations San Francisco (NorCal) Special Agent in Charge Tatum King. “HSI San Francisco is proud of our agents and professional staff who worked together on this multi-year criminal investigation into this MS-13 clique in Mendota, which yielded dozens of arrests and prevented additional acts of violence.”
According to court documents, Rivas Gomez was a member of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. On Dec. 18, 2017, Rivas Gomez and his fellow MS-13 members kidnapped the 19-year-old victim in Mendota, drove him to a remote location approximately 30 minutes away, and used a knife and machete to murder him, all in furtherance of MS-13’s criminal gang enterprise. A jury convicted Rivas Gomez in September 2022 of kidnaping and murder in aid of racketeering.
This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the California Department of Justice and the California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson and Kimberly Sanchez prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Local Driving School Owner Pleads Guilty to Driver's License Bribery Scheme at Brockton RMVRead the Press Release
BOSTON – A Brockton man pleaded guilty today to bribing a road test examiner to issue driver’s licenses to individuals who did not pass, or even take road tests at the Registry of Motor Vehicles (RMV) in Brockton.
Estevao Semedo, 61, of Brockton, pleaded guilty to one count of conspiracy to commit honest services mail fraud before U.S. District Court Judge Indira Talwani who scheduled sentencing for Aug. 1, 2023. Semedo was charged on March 2, 2023.
Semedo, the owner of a driving school, conspired to defraud the RMV into issuing driver’s licenses to applicants who did not pass the road test. Specifically, Semedo paid a road test examiner at the Brockton RMV service center to misrepresent to the RMV that certain driver’s license applicants had passed their road test when, in fact, they had not. Some of the applicants did not even show up to take the test. As a result of the fraud, the RMV mailed driver’s licenses to unqualified applicants. In total, Semedo paid the road test examiner no less than $17,000 in bribes in exchange for fraudulent passing scores on road tests.
The charge of conspiracy to commit honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. The charging document also seeks a $17,000 forfeiture money judgment against Semedo. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge Christopher A. Scharf made the announcement today. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF). Valuable assistance was provided by the Mattapoisett Police Department. Assistant U.S. Attorneys Christine Wichers and Adam Deitch of Rollins’s Public Corruption & Special Prosecutions Unit and Assistant U.S. Attorney Mackenzie Duane of Rollins’ Major Crimes Unit are prosecuting the case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit also assisted with the case.
Last Conspirator Sentenced in Methamphetamine Drug RingRead the Press Release
United States Attorney Steven A. Russell announced that Dustin Charles Vogel, 36, was sentenced today in federal court in Omaha, Nebraska, for his participation in a methamphetamine drug conspiracy. United States District Judge Brian C. Buescher sentenced Vogel to 140 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On October 6, 2021, deputies from the Douglas County Sheriff’s Office and the Metro Fugitive Task Force were attempting to locate co-defendant Haley Coffman, who had an outstanding felony warrant for violating her bond conditions on a charge of possessing methamphetamine in Douglas County Court.
Responding to a tip, law enforcement located Coffman at an Omaha area motel. Law enforcement set up surveillance and observed Coffman, Vogel, and Jonathan Miller leaving the hotel and getting into a vehicle, which law enforcement then approached.
The driver of the vehicle, Miller, put the car in reverse and backed up toward law enforcement, striking the front of one of their vehicles with the back of the Impala. An officer was seated in the vehicle when it was hit. Miller then drove his vehicle from the area at a high rate of speed before crashing in a construction area. Miller, Vogel, and Coffman fled on foot before being apprehended a short time later by law enforcement.
During an inventory search of the vehicle, a large amount of suspected methamphetamine was found in a bag on the floorboard. The bag was accessible to all three occupants. A forensic laboratory analyzed the suspected narcotics and determined it to be methamphetamine having a purity of 86.9%, resulting in an actual weight of 255.1 grams.
Haley M. Coffman was sentenced on November 16, 2022, to 170 months’ imprisonment and 5 years’ supervised release for her participation in the drug conspiracy.
Jonathan Miller was sentenced on August 24, 2022, to 205 months’ imprisonment for his participation in the drug conspiracy and for assault, resisting or impeding an officer with a dangerous or deadly weapon. He was sentenced to 5 years total of supervised release on both charges.
This case was investigated by the Douglas County Sheriff’s Office, Metro Fugitive Task Force, and Drug Enforcement Administration.
Las Vegas Man Sentenced for Use of A Firearm in A CarjackingRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced Monday by U.S. District Judge Richard F. Boulware II to seven years in prison followed by three years of supervised release for carjacking two people at gunpoint.
Steve Francis Pitchford Jr., 39, pleaded guilty on March 24, 2022, to use of a firearm during and in relation to a crime of violence.
According to court documents, on June 17, 2019, Pitchford approached two people sitting in a car in the parking lot of a Las Vegas dentist’s office and pointed a firearm at them. Pitchford told them to get out of the car, then drove off in the car. Las Vegas Metropolitan Police Department officers arrested Pitchford on June 28, 2019.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Former Special Assistant United States Attorney Nicholas Portz and Assistant United States Attorney Dan Cowhig prosecuted the case.
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La Crosse Man Sentenced to 172 Months for Methamphetamine Trafficking & Illegally Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jade Deeny, 26, La Crosse, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 172 months in prison for possessing methamphetamine with intent to distribute and possessing a firearm as a felon. This prison term will be followed by an eight-year period of supervised release.
On June 6, 2022, a confidential informant (CI) worked with investigators from the La Crosse Police Department (LCPD) and purchased cocaine and prescription pills from Deeny. During the drug transaction, investigators overheard Deeny and the CI discuss an assault rifle and a 9 mm pistol.
Shortly after the CI left Deeny’s residence, surveillance officers watched Deeny and a female drive away from the house. Officers stopped the car and arrested Deeny.
Following Deeny’s arrest, an investigator from the LCPD obtained a search warrant for his house. During the search, investigators found three firearms, hundreds of rounds of ammunition, high-capacity magazines, and a taser. Investigators also located pounds of counterfeit prescription pills, a scale, empty vegetable capsules, a vacuum sealer, U.S. Postal Service (USPS) shipping boxes, cash, and a lease to self-storage unit.
Investigators eventually obtained a search warrant for Deeny’s storage unit and found that it contained a motorized pill press with a mixer and ventilation unit, tablet presses, 350 pounds of different colored cutting agents, gallons of acetone and ethyl alcohol, 135 pounds of counterfeit prescription pills in various colors, two firearms, ammunition, a high-capacity magazine, and thousands of additional USPS shipping boxes.
Agents from the Federal Bureau of Investigation assisted with the review of Deeny’s computer and discovered evidence that showed he shipped hundreds of packages to people in 46 different states, as well as Puerto Rico.
Testing by the Drug Enforcement Administration determined that pills located in Deeny’s residence and storage unit contained methamphetamine, bromazolam, and other substances.
In sentencing Deeny, Judge Conley focused on the danger that Deeny posed to the community. Judge Conly noted that some of the prescription pills Deeny manufactured contained substances not yet scheduled in the United States. Judge Conley also highlighted Deeny’s continued possession of firearms, despite his prior felony convictions.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Deeny were the result of an investigation conducted by the La Crosse Police Department, Federal Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Chadwick Elgersma prosecuted this case.
Klamath Falls Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—A Southern Oregon man was sentenced to federal prison today for possessing and distributing large quantities of methamphetamine in and around Klamath Falls, Oregon.
Raul Sanchez-Lopez, 45, a resident of Klamath Falls, was sentenced to 84 months in federal prison and three years’ supervised release.
According to court documents, in July 2021, law enforcement executed search warrants at two Klamath Falls residences associated with Sanchez-Lopez. Inside one residence, officers located and seized thirteen bags containing approximately 680 grams of methamphetamine, scales, and other drug paraphernalia. Sanchez-Lopez admitted to mixing, weighing, and packaging methamphetamine and distributing it in the Klamath Falls area. In August 2021, he was charged by federal criminal complaint and arrested.
On July 14, 2022, a federal grand jury in Medford returned an indictment charging Sanchez-Lopez with possessing with intent to distribute methamphetamine and, on September 12, 2022, he pleaded guilty to the single charge.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) with assistance from Oregon State Police, Klamath Falls Police Department, and Klamath County Sheriff’s Office. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
Justice Department Reaches Multimillion Dollar Civil Settlement in Principle in Sutherland Springs Mass ShootingRead the Press Release
The Justice Department announced today an agreement in principle to settle the civil cases arising out of the tragic November 2017 mass shooting at the First Baptist Church of Sutherland Springs, Texas, that killed 26 worshippers and injured 22 others.
These tentative settlements will resolve claims by more than 75 plaintiffs arising out of the shooting. Plaintiffs’ claims alleged that the Air Force was negligent when it failed to transmit to the National Instant Criminal Background Check System (NICS) information about the shooter that would have prevented him from purchasing guns from a federally licensed firearms dealer. A federal district court in Texas concluded that the United States was liable for damages caused by the shooting. This tentative settlement would resolve the pending appeals.
The agreement in principle would settle all claims for a total of $144.5 million. The settlement agreement has been approved, subject to the plaintiffs’ securing the required court approvals. Under applicable law, a court must approve some aspects of the settlements.
“No words or amount of money can diminish the immense tragedy of the mass shooting in Sutherland Springs,” said Associate Attorney General Vanita Gupta. “Today’s announcement brings the litigation to a close, ending a painful chapter for the victims of this unthinkable crime.”
The NICS plays a critical role in combatting gun violence, and the federal government is always striving to improve the functioning of that system. The department continues to work actively to combat gun violence as part of its comprehensive violent crime reduction strategy.
Justice Department Continues Efforts to Stop Fraudulent Tax PreparersRead the Press Release
The Department of Justice urges taxpayers to choose their return preparers wisely as the April 18 federal tax filing deadline approaches. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
“Taxpayers should choose their return preparer wisely and remain vigilant against unscrupulous preparers, who often present clients with refunds that are too good to be true,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “If your preparer asks you to sign a blank return, refuses to sign your return as your return preparer, or is charging you a fee based on the size of your refund, consult the IRS’s website and tips to make sure you are not exposing yourself to trouble.”
“Tax preparers who falsify deductions, or otherwise seek to fraudulently inflate client refunds, face consequences,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “As the Tax Division’s work over the past year demonstrates, our prosecutors have the expertise and resources to identify crooked return preparers and hold them accountable for their criminal conduct.”
The Tax Division works with U.S. Attorneys’ Offices around the country to bring civil and criminal actions against dishonest tax preparers. The division seeks civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal penalties. The department’s message to those who prepare fraudulent returns is that they will face serious and lasting consequences.
Criminal convictions against fraudulent preparers obtained by the Tax Division over the last year include:
- In January 2023, Betty Hawkins and Phyllis Ricks, two North Carolina tax preparers, were sentenced to 24 months and 36 months in prison, respectively, for their role in conspiring to file false income tax returns on behalf of clients of the tax return preparation business where they worked. They were ordered to pay approximately $5.2 million in restitution.
- In December 2022, Eunice Salley, a Chicago tax preparer, was sentenced to seven years in prison for filing false income tax returns on behalf of her tax preparation clients seeking more than $1 million in fraudulent refunds. She also failed to report the income received from cashing dozens of pension checks sent to her deceased grandmother. Salley was also ordered to pay $558,396 in restitution.
- In December 2022, King Isaac Umoren, a Las Vegas tax preparer, was sentenced to 13 years and three months for, among other things, preparing and filing with the IRS tax returns for clients that included false deductions and fictitious businesses in an effort to generate larger refunds than the clients were entitled to receive. He was also ordered to pay $9,699,887 in restitution to the United States and other victims of his fraud.
- In August 2022, Guy Telfort, a Fort Lauderdale tax preparer, was sentenced to 13 months in prison for continuing to prepare and file tax returns with the IRS in violation of a federal court order barring him from doing so.
- In March 2022, Fred Pickett, Jr., a Florida tax preparer, was sentenced to 97 months in prison for preparing returns on behalf of clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. He was also ordered to pay approximately $169,639 in restitution.
Examples of civil injunctions obtained by the Tax Division over the last year include:
- On Jan. 24, 2023, a federal district court in the Southern District of Florida permanently barred Arnold Zio individually and doing business as Platinum Citizens Financial, LLC and FTP Tax Services, from preparing returns for others and from owning or operating a tax return preparation business in the future. The government alleged that Zio prepared tax returns claiming fabricated business income and expenses, as well as various false tax deductions. Additionally, the government alleged that Zio, without authorization, diverted customer refunds into his own bank account and failed to return COVID-19 stimulus funds that were improperly deposited into his account.
- On Oct. 21, 2022, a federal district court in the Eastern District of New York permanently barred Maria Cuervo and her business, Danays Enterprises & Travel, Inc., from operating as tax return preparers. The order required Cuervo to disgorge to the United States $150,000.00 in fees that the government alleged she received as ill-gotten gains for preparing federal tax returns that make grossly incompetent, negligent, reckless, or fraudulent claims.
- On May 12, 2022, a federal district court in the Eastern District of Texas entered an order permanently barring Michelle Denise Johnston from operating a tax return preparation business and preparing federal income tax returns for others. The government’s complaint alleged that Johnston prepared and filed tax returns that understated her customers’ federal income tax liabilities and further alleged that Johnston engaged in a refund-skimming scheme whereby she deducted unauthorized “fees” from inflated refunds unbeknownst to her customers.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year, the division has brought these cases to court, including:
- On July 4, 2022, a federal court in the Southern District of Florida found tax-preparer defendants Marcus Alty and Jeanait Mathurin in contempt for violating an injunction that bars them from preparing returns for others. The court also held in contempt J and M Tax Services, LLC, a return preparation business that Alty and Mathurin created post-injunction to continue their return preparation business. The court ordered Alty, Mathurin, and J and M Tax Services to disgorge nearly $650,000 in ill-gotten gains and to pay $18,000 in costs to the government. The court also sanctioned Alty, Mathurin, and J and M Tax Services of the government’s attorneys’ fees of over $14,000.
- On Apr. 12, 2022, a federal court in the Eastern District of Michigan required Laron Stroud and Raheen Stroud to pay over $120,000 in civil contempt sanctions for their violations of a 2016 permanent injunction prohibiting them from preparing tax returns or assisting in or directing the preparation or filing of tax returns. The amount of the sanctions represents the total tax preparation fees received by the Strouds (and those they assisted) to file returns after the date of the injunction.
- On Sept. 29, 2022, a federal court in the Southern District of Florida required Nate Dameus to pay $213,500 of ill-gotten fees for violating the court’s September 2021 order that permanently barred Dameus from acting as a return preparer. The court’s order also requires Dameus to reimburse the government approximately $10,000 for the costs incurred to investigate his violations and enforce the injunction.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series. The Tax Division reminds taxpayers that the IRS has information, tips, and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained civil injunctions and criminal convictions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jefferson County Man Admits Possessing Pipe Bombs, MethamphetamineRead the Press Release
ST. LOUIS – A man from Jefferson County, Missouri on Wednesday admitted possessing two pipe bombs and methamphetamine.
Douglas Moore, 47, of Byrnes Mill, was stopped by a deputy with the Jefferson County Sheriff's Department on May 11,2021, while driving a 2004 Suzuki Aerio with expired license plates. He had an active warrant. After his arrest, the deputy found the pipe bombs and methamphetamine in the car.
Moore was on probation at the time and has pending charges in Ste. Genevieve County and Jefferson County circuit courts.
Moore pleaded guilty Wednesday in front of U.S. District Judge Ronnie L. White to one felony count of possession of an unregistered destructive device.
Moore is scheduled to be sentenced in July. The crime carries a maximum penalty of 10 years in prison, a $10,000 fine, or both.
The case was investigated by the Jefferson County Sheriff’s Department, the St. Louis Regional Bomb and Arson Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Martin is prosecuting the case.
Great Falls felon sentenced to more than five years in prison for possessing firearmRead the Press Release
BILLINGS — A Great Falls man with a felony conviction was sentenced today to five years and 10 months in prison, to be followed by three years of supervised release, for illegally possessing a firearm, U.S. Attorney Jesse Laslovich said.
Raymond Lee Toulouse, 37, pleaded guilty in November 2022 to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in May 2022, Billings police officers checked on a suspicious vehicle and found Toulouse under the influence of some kind of substance and in possession of a loaded 9 mm semi-automatic pistol that had been stolen in Butte. At the time, Toulouse had absconded from federal supervision in Great Falls and was prohibited from possessing firearms after having been convicted of a methamphetamine trafficking crime in U.S. District Court.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Indicted on Charge of Firebombing Building
Hridindu Sankar Roychowdhury, 29, Madison, Wisconsin, is charged with attempting to cause damage to a building by means of fire or an explosive. The indictment alleges that he did so on May 8, 2022. Roychowdhury was previously charged with this offense in a complaint filed in U.S. District Court for the Western District of Wisconsin on March 27, 2023. Federal law requires that felony offenses charged by complaint be presented to a grand jury for indictment.
Roychowdhury was arrested in Boston, Massachusetts at Logan International Airport on March 28. He made an initial appearance in federal court in Boston that day. A detention hearing was held on March 30, and he was ordered held in custody. A date for his appearance in federal court in Madison has not been set.
If convicted, Roychowdhury faces a mandatory minimum penalty of five years and a maximum of 20 years in prison. The charge against him is the result of an investigation by the Madison Police Department; Wisconsin State Capitol Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation’s Joint Terrorism Task Force; Homeland Security Investigations; Dane County Sheriff’s Office; with the assistance of the FBI Boston Field Office; Boston Police Department; Massachusetts State Police; U.S. Coast Guard; Federal Air Marshal Service, and Transportation Security Administration.
Assistant U.S. Attorney Elizabeth Altman of the Western District of Wisconsin and Trial Attorney Justin Sher of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division are handling the prosecution.
Rock County Man Charged with Robbing Madison Bank
Richard L. Chapman, 65, Janesville, Wisconsin, is charged with bank robbery. The indictment alleges that on February 3, 2023, he robbed the Park Bank, located on East Main Street in Madison, Wisconsin.
If convicted, Chapman faces a maximum penalty of 20 years in prison. The charge against him is the result of an investigation by the Madison Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Geneva Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Chad Billington, 38 years old, of Geneva, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution of methamphetamine, announced United States Attorney Clifford D. Johnson.
Billington was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, Billington engaged in the sale of methamphetamine to law enforcement on several occasions during November and December of 2020. The methamphetamine obtained from Billington had a purity level of 97 percent or higher.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Allen County Sheriff’s Department and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Brent A. Ecenbarger.
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Genesis Market Disrupted in International Cyber OperationRead the Press Release
U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin joined the Attorney General and other Justice Department officials in announcing a coordinated international operation that resulted in the dismantlement of Genesis Market, a criminal marketplace accessible on the dark web and clear web that advertised and sold packages of account access credentials – such as usernames and passwords for email, bank accounts, and social media – that had been stolen from malware-infected computers around the world.
“Working across 45 of our FBI Field Offices and alongside our international partners, the Justice Department has launched an unprecedented takedown of a major criminal marketplace that enabled cybercriminals to victimize individuals, businesses, and governments around the world,” said Attorney General Merrick B. Garland. “Our seizure of Genesis Market should serve as a warning to cybercriminals who operate or use these criminal marketplaces: the Justice Department and our international partners will shut down your illegal activities, find you, and bring you to justice.”
“Yesterday, the Department of Justice and its partners dismantled the Genesis Market and arrested many of its users around the world,” said Deputy Attorney General Lisa O. Monaco. “Genesis falsely promised a new age of anonymity and impunity, but in the end only provided a new way for the Department to identify, locate, and arrest on-line criminals. The Department of Justice is shining a light on the internet’s darkest corners – in the last year alone, our agents, prosecutors, and partners have dismantled the darknet’s largest marketplaces – Hydra Market, BreachForums, and now Genesis. Each takedown is yet another blow to the cybercrime ecosystem.”
Since its inception in March 2018, Genesis Market has offered access to data stolen from over 1.5 million compromised computers around the world containing over 80 million account access credentials. Account access credentials advertised for sale on Genesis Market included those connected to the financial sector, critical infrastructure, and federal, state, and local government agencies. Genesis Market was also one of the most prolific initial access brokers (IABs) in the cybercrime world. IABs attract criminals looking to easily infiltrate a victim’s computer system. Genesis Market offered for sale the type of access sought by ransomware actors to attack computer networks in the United States and around the world and published private-sector reports indicate that they indeed were used by ransomware actors to attack such systems.
Genesis Market was user-friendly, providing users with the ability to search for stolen access credentials based on location and/or account type (e.g., banking, social media, email, etc.). In addition to access credentials, Genesis Market obtained and sold device “fingerprints,” which are unique combinations of device identifiers and browser cookies that circumvent anti-fraud detection systems used by many websites. The combination of stolen access credentials, fingerprints, and cookies allowed purchasers to assume the identity of the victim by tricking third party websites into thinking the Genesis Market user was the actual owner of the account.
Genesis Market users were located all over the world. Federal law enforcement has worked to identify prolific users of Genesis Market who purchased and used stolen access credentials to commit fraud and other cybercrimes. This effort resulted in hundreds of leads being sent to FBI field offices throughout the United States, as well as to foreign law enforcement partners. Further, as part of this operation, law enforcement seized, pursuant to court order, 11 domain names used to support Genesis Market’s infrastructure.
“The operation being announced today is the direct result of the hard work, dedication, and exceptional collaborative efforts of the FBI and its partners around the globe,” stated U.S. Attorney Haanstad. “Along with investigative partners and our Justice Department colleagues, my office remains committed to using all available tools to protect individuals from cybercriminals like those who operate these types of online marketplaces.”
“Today’s takedown of Genesis Market is a demonstration of the FBI’s commitment to disrupting and dismantling key services used by criminals to facilitate cybercrime,” said FBI Director Christopher Wray. “The work in this case is a great example of the FBI’s ability to leverage our technical capabilities and work shoulder-to-shoulder with our international partners to take away the tools cyber criminals rely on to victimize people all across the world.”
As alleged in a domain seizure warrant authorized by the U.S. District Court for the Eastern District of Wisconsin, Genesis Market offered for sale victim credentials associated with the White House, Department of State, Justice Department, IRS, Department of Energy, U.S. Postal Service, National Aeronautics and Space Administration, and the Department of Defense.
The FBI Milwaukee Field Office investigated the case, with assistance from the U.K. National Crime Agency, Italy’s Polizia de Stato, Police of Denmark, Australian Federal Police, Royal Canadian Mounted Police, Canada’s Sûreté du Québec, Romanian Police, French Police Cybercrime Central Bureau, Spain’s Policia Nacional, Spain’s Guardia Civil, Germany’s Federal Criminal Police Service, Swedish Police Authority, Poland’s Central Bureau for Combating Cybercrime, Dutch National Police, Finland’s National Bureau of Investigation, Switzerland’s Office of the Attorney General, Swiss Federal Police, Estonia’s Prosecutor General’s Office, Iceland’s Metropolitan Police, and Eurojust.
The department appreciates the assistance provided by authorities in Bulgaria and Latvia in response to Mutual Legal Assistance requests.
Trial Attorneys Benjamin Proctor and Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are handling the investigation. The Justice Department’s Office of International Affairs provided significant assistance.
Victim credentials obtained over the course of the investigation have been provided to the website Have I Been Pwned, which is a free resource for people to quickly assess whether their access credentials have been compromised (or “pwned”) in a data breach or other activity. Victims can visit HaveIBeenPwned.com to see whether their credentials were compromised by Genesis Market so that they can know whether to change or modify passwords and other authentication credentials that may have been compromised.
If you have been active on Genesis Market, in contact with Genesis Market administrators, or have been a victim and have a need to report, please email the FBI at [email protected].
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For Additional Information Contact:
Public Information Officer
414-297-1700
Frederick County Sheriff and Gun Dealer Indicted for Scheme to Illegally Acquire MachinegunsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Charles Austin Jenkins, age 66, of Thurmont, Maryland, and Robert Justin Krop, age 36, of Frederick, Maryland, with conspiracy and false statements in order to acquire machineguns. Krop is also charged with illegal possession of machineguns. No court appearance is scheduled for the defendants at this time.
The indictment was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
As detailed in the indictment, Charles Jenkins has been the Sheriff of Frederick County since his election in 2006 and was most recently re-elected in 2022. Robert Krop is the principal owner and operator of firearms-related businesses in Frederick County. Krop and his businesses held up to two Federal Firearms Licenses (“FFLs”) that allowed Krop and the business, under certain circumstances, to possess and deal in machineguns.
The six-count indictment alleges that from August 2015 to May 2022, Jenkins and Krop conspired to unlawfully purchase machineguns and falsified multiple documents on the Frederick County Sheriff’s Office letterhead requesting machineguns for evaluation and demonstration to the Frederick County Sheriff’s Office. Krop allegedly drafted these documents for Jenkins’ signature. According to the indictment, Jenkins and Krop knew that there would not be a demonstration of the machineguns to the Sheriff’s Office and that the machineguns were intended for rental to Krop’s customers. Krop also allegedly illegally possessed seven machineguns. The indictment further alleges that Krop’s business offered political support to Jenkins in recognition of his support for the business.
If convicted, Jenkins and Krop face a maximum sentence of five years in federal prison for the conspiracy, for false statements in records maintained by a federal firearms licensee and for false statements to federal law enforcement. If convicted, Krop also faces a maximum sentence of 10 years in federal prison for unlawful possession of a machinegun.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the ATF for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine Goo and Leo Wise, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Four Tampa Bay Area Tax Preparers Plead GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jamica Nelms, Capriesha Cummings, Camille Harper, and Ashley Flournoy have pleaded guilty to conspiracy to commit tax fraud and aiding or assisting in the preparation of false income tax return documents. Each faces a maximum penalty of eight years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from January 2017 through April 2019, Nelms, Cummings, Flournoy, and Harper were income tax return preparers at Business #1 in St. Petersburg. They conspired to defraud the United States by preparing false income tax returns for numerous clients of Business #1 in order for the Internal Revenue Service (IRS) to issue tax refunds in excess of what the clients were entitled to receive. In doing so, Nelms, Cummings, Flournoy, and Harper documented on Schedule C forms they prepared that clients owned fictitious businesses which maximized the clients’ ability to claim the Earned Income Credit on their tax returns and thereby increase their tax refunds. They also fraudulently reported that clients were entitled to claim credits for fuel taxes or education expenses paid to make it appear that their clients were entitled to tax refunds.
“The defendants’ admissions today stress the importance of the taxpayer acting as the first line of defense against unscrupulous preparers and their scams,” said IRS-CI Tampa Special Agent in Charge Brian Payne. “With the filing season deadline just a week away, this investigation is a timely reminder about why the taxpayer must do their due diligence when selecting a preparer because ultimately you are responsible for your return.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Greg Pizzo, Jay Trezevant, and Maria Guzman.
Fort Wayne Woman Sentenced to 69 Months in PrisonRead the Press Release
FORT WAYNE –Kelly Krieger, 38 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to aiding and abetting armed bank robbery, announced United States Attorney Clifford D. Johnson.
Krieger was sentenced to 69 months in prison, 2 years of supervised release and ordered to pay $202,184 in restitution to the victim bank.
According to documents in the case, a bank in Fort Wayne was robbed on Christmas Eve 2019 by an individual armed with a deadly weapon, later identified later as Horia Malutan.
During their investigation, law Enforcement determined that one of the bank employees, the branch manager, Kelly Krieger, was involved in the robbery. Krieger admitted to law enforcement that she and Malutan planned the robbery. Krieger said that she told Malutan where to stand before coming into the bank, what words to use once inside the bank and how to exit the bank.
Co-defendant Malutan pled guilty to the armed bank robbery. He was sentenced in May, 2022, to 57 months imprisonment and ordered to pay restitution to the victim bank.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Philadelphia City Treasurer Sentenced to Prison for Immigration Fraud and Failure to File TaxesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christian Dunbar, 42, of Philadelphia, PA, the former Philadelphia City Treasurer, was sentenced to six months in prison, 3 years of supervised release, a $10,000 fine, and $33,202.00 in restitution to the IRS by United States District Court Judge Cynthia M. Rufe. His U.S. citizenship will also be revoked. As part of his application to become a U.S. citizen, Dunbar made multiple false statements, submitted altered citizenship papers, and failed to file federal tax returns in three separate tax years.
In May 2021, the defendant was charged by Superseding Indictment with multiple counts of filing a false income tax return and failure to file tax returns. Earlier, in September 2020, Dunbar was charged in a 14-count Indictment, charging embezzlement by a bank employee, procurement of naturalization through a false statement, procurement of naturalization unlawfully, obtaining false citizenship papers, and making false statements in support of naturalization.
The defendant previously admitted to procuring U.S. citizenship fraudulently by providing false information about where and with whom he was living, where his child was residing, and submitting a false lease and a false W-2 tax form to U.S. Citizenship and Immigration Services. Further, Dunbar admitted to not filing his personal income tax returns for tax years 2015, 2016, and 2019 (during the last of which he was serving as the Philadelphia City Treasurer).
“Christian Dunbar’s actions in seeking United States citizenship and serving as the City of Philadelphia’s Treasurer betrayed the ideals inherent in the precious privilege of U.S. citizenship, and the duty he owed to Philadelphians to oversee the City’s finances,” said U.S. Attorney Romero. “Our Office will continue to work with our law enforcement partners to hold public officials accountable.”
“As city treasurer, Christian Dunbar held a key position of public trust,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Little did the people of Philadelphia realize that his U.S. citizenship was fraudulently obtained and he'd been dodging doing his taxes. Philly deserves better and the FBI will continue to work on behalf of the public to hold corrupt officials like Dunbar accountable.”
“Mr. Dunbar’s conscious decision to violate federal tax laws has cost him his freedom,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “With the end of the tax filing season fast approaching, this should serve as another reminder of the importance for filing an accurate tax return. Failure to do so could lead to similar consequences.”
“Today’s sentencing of Mr. Dunbar illustrates HSI’s commitment to ensuring that our immigration system is void of fraud and deception, particularly from those entrusted with public office,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “HSI will continue to tirelessly work with our partners in the U.S. Attorney’s Office, FBI, and IRS-CI to prosecute and to revoke any fraudulently obtained citizenship from those committing federal crimes and violating the trust of the people of Philadelphia.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Former Keolis Assistant Chief Engineer and Electrical Company General Manager Charged with Defrauding Keolis Commuter ServicesRead the Press Release
BOSTON – The former Assistant Chief Engineer of Facilities for Keolis Commuter Services (Keolis) and the former general manager of a Massachusetts-based electrical company have been charged in a scheme to defraud Keolis of over $8 million.
John P. Pigsley, 58, was indicted by a federal grand jury on five counts of wire fraud, one count of conspiracy to commit wire fraud, six counts of tax evasion, one count of filing a false tax return and four counts of structuring financial transactions to evade reporting requirements. Pigsley was arrested this morning and will appear in federal court in Boston at 1:45 p.m. today.
John Rafferty, 69, of Hale’s Location, N.H., has been charged by an Information and has agreed to plead guilty to one count of conspiracy to commit wire fraud.
“There is perhaps no single state agency that impacts the daily lives of the millions of people who live and work in the greater Boston area more than the MBTA. Over the last few years, T ridership has had to endure its fair share of both acute and chronic issues. Today, unfortunately, we add fraud to that list. The criminal conduct alleged here specifically involves the Commuter Rail – the entity Keolis operates for the T – and two men who lied to, cheated and stole from Keolis,” said United States Attorney Rachael S. Rollins. “We allege that the defendants stole over $8 million from Keolis, and that Pigsley did so while an employee of the organization. The $8 million they stole could have been used to ensure significantly safer, faster and more reliable transportation for riders. Instead, these men lined their pockets for their own selfish gain. It is my hope that this prosecution holds these alleged criminals accountable.”
“These men are accused of crossing the line from fixing our broken rail system to defrauding it when they devised a plan to pad their paychecks by stealing more than $8 million that was meant for repairs and routine maintenance at a time when overall needs on the commuter rail are so deep, funding sources are so strained, and the need for better service is so crucial,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Their alleged actions demonstrate both a disdain for the rule of law, and a clear-cut case of greed. Today’s arrests should be a warning to others that the FBI and our partners are committed to investigating and bringing to justice anyone who abuses their positions of trust to fraudulently siphon off public funds.”
"The serious accusations against John Pigsley are particularly troubling as he breached the trust he was given as a senior lead with Keolis,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. “These allegations represent an egregious breach of the trust that had been placed in Keolis through its operation of the MBTA. The Special Agents of IRS Criminal Investigation are committed to protecting the integrity of our system of taxation by investigating individuals who violate the tax laws."
“Today’s announcement should serve as notice that we are committed to thwarting and unravelling complex fraud schemes involving millions of taxpayer dollars used to maintain MBTA commuter rail systems,” said U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge Christopher A. Scharf. “We will continue working with our Federal and prosecutorial partners to pursue those who deceitfully manipulate business contracting and accounting practices for personal gain.”
According to the charging documents, Keolis has operated the MBTA commuter rail system since 2014 under an annual contract of $291–$349 million. Between 2014 and November 2021, Pigsley was employed as Keolis’ Assistant Chief Engineer of Facilities and was responsible for the maintenance of MBTA Commuter Rail Facilities and their engineering operations, including handling corrective repair and project management for assets and maintenance and ordering and approving his subordinates’ orders of electrical supplies from outside vendors for Keolis. Pigsley also operated a separate construction company called Pigman Group. Rafferty was the general manager of LJ Electric, Inc., an electrical supply vendor to which Keolis paid over $17 million between 2014 through 2021.
Between July 2014 and November 2021, Pigsley and Rafferty allegedly defrauded Keolis of over $4 million through a false LJ Electric invoicing scheme. Specifically, it is alleged that Rafferty purchased vehicles, construction equipment, construction supplies and other items for Pigsley, Pigman Group and others, and Pigsley directed Rafferty to recover the cost of these items by submitting false and fraudulent LJ Electric invoices to Keolis. The fraudulent LJ Electric invoices included a percentage profit that Rafferty allegedly kept for himself. It is further alleged that Rafferty spent more than $3 million on items for Pigsley and others – including: at least nine trucks; construction equipment including at least seven Bobcat machines; at least $1 million in home building supplies and services; and a $54,000 camper– for which Keolis paid Rafferty more than $4 million based on false LJ Electric invoices.
In addition to the false invoicing scheme, it is alleged that Pigsley directed Keolis to purchase copper wire which he then stole and sold to scrap metal businesses, keeping the cash proceeds for himself. To conceal the theft, it is alleged that Pigsley personally picked up the copper wire orders from vendors or had the orders delivered to his Beverly home. Pigsley allegedly then personally transported the wire to scrap yards where he traded it for thousands of dollars in cash several times a month and sometimes more than once a day. According to the charging documents, Pigsley obtained more than $4.5 million in cash by stealing and scrapping the copper wire.
It is further alleged that Pigsley defrauded the IRS by failing to withhold and pay federal income taxes on income he received from the LJ Electric invoicing scheme and from scrapping copper wire. Pigsley also allegedly filed a false tax return for the tax year 2016. Additionally, Pigsley is alleged to have deposited over $1.9 million in cash into his bank accounts between 2014 and 2021, and to have structured some of those deposits to evade currency transaction reporting requirements applicable to financial institutions.
With respect to the Indictment charging Pigsley, the charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of filing a false tax return provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of aggravated structuring provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000.
With respect to the Information filed against Rafferty, the charge of conspiracy to commit wire fraud provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000.
Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS-CI SAC Simpson, and DOT-OIG SAC Scharf made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Elysa Q. Wan of Rollins’ Public Corruption & Special Prosecutions Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Inmate Pleads Guilty to Involuntary ManslaughterRead the Press Release
Jackson, Mississippi – A former federal inmate pled guilty to involuntary manslaughter, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Michael Phillips, 47, a citizen of Jamaica, pled guilty on April 4, 2023 in U.S. District Court in Jackson.
According to court documents and statements made in court, on or about July 2, 2017, Phillips killed another inmate during a fight in a prison housing unit at the Federal Correctional Complex in Yazoo City, Mississippi, where both Phillips and the other inmate were incarcerated. During the course of the fight, Phillips threw a punch causing the other inmate to fall backwards into a metal locker. The other inmate hit the back of his head on the locker, and he died as a result of his injuries.
Phillips will be sentenced on July 7, 2023 and faces a maximum penalty of eight years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation.
Special Assistant United States Attorney Joshua Robles and Assistant United States Attorney Kimberly Purdie prosecuted the case.
Former City of Miami Police Officer Pleads Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Gregory Dennis, 45, a former police officer with the City of Miami Police Department, has pled guilty to wire fraud in connection with two fraudulent applications for Paycheck Protection Program (PPP) loans he submitted to a Small Business Administration (SBA) approved PPP lender while he was still employed with the City of Miami Police Department.
On March 28, 2021, Dennis submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a cleaning service. The PPP loan application falsely represented his business’ 2020 gross income and in support of the application, he submitted a false and fraudulent IRS Form 1040, including a Schedule C, for tax year 2020. As a result of the false and fraudulent application, Dennis obtained a $20,833 PPP loan from a California-based SBA approved PPP lender.
On April 10, 2021, Dennis submitted a second false and fraudulent PPP loan application, this time seeking a second draw PPP loan. Once again, Dennis claimed to be a sole proprietor operating a cleaning service, and this second draw application also fraudulently represented his business’ 2020 gross income. This second draw application also was supported by the same false and fraudulent 2020 IRS Form 1040 and Schedule C that was used to fraudulently obtain the first PPP loan. Again, the fraudulent application was approved successfully, and Dennis received an additional $20,833 in second draw PPP loan proceeds from the same California-based lender.
Dennis is scheduled for sentencing on June 13, at 1:15 p.m. before U.S. District Judge William P. Dimitrouleas in Fort Lauderdale, where he faces a possible maximum sentence of up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Investigations Division’s Eastern Region, announced the guilty plea.
The FBI’s Miami Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. U.S. Attorney Lapointe thanked the City of Miami Police Department and the Miami-Dade County Office of Inspector General for their invaluable assistance with this case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60063.
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Former City Treasurer in Alaska Indicted for Wire Fraud, Money Laundering, and Tax EvasionRead the Press Release
A federal grand jury in Anchorage returned an indictment on March 21, 2023, charging an Alaska man with wire fraud, money laundering and tax evasion.
According to the indictment, from 2015 to 2022, Jess George Adams of Willow, Alaska, embezzled a total of more than $1.16 million from the City of Houston, Alaska, and from a Wasilla-based equipment company.
The indictment alleges that from 2015 through 2018, Adams was the Treasurer for the City of Houston, entrusted with bookkeeping responsibilities and administrative access to the City’s accounting records and software. Adams allegedly used this access to direct electronic transfers from the City’s bank account to a personal account in his name, maintained by Adams to hide the embezzled funds. It is further alleged that Adams used fictitious entries in the City’s accounting software to make it appear as though these payments were made for legitimate business expenses.
In October 2018, the City of Houston allegedly placed Adams on administrative leave, and he resigned his position in November 2018. A year later, Adams allegedly was employed as a bookkeeper by an equipment company, where he exercised control over the company’s accounting records and software. The indictment charges that, using this access, Adams directed electronic transfers from the company’s bank account to other personal accounts that Adams opened in his name to hide the embezzled money. To conceal his activity, Adams allegedly used fictitious entries in the company’s accounting software to make it appear as though these funds were transferred for the payment of legitimate business expenses.
Adams allegedly laundered the embezzled money he obtained from the equipment company by making several wire transfers from his personal bank account to other accounts, each at a value greater than $10,000.
The indictment further charges that in another attempt to conceal his embezzlement and evade the assessment of income taxes, Adams filed false individual income tax returns for tax years 2016 through 2021, which did not disclose the additional income he diverted to himself. According to the indictment, Adams was a former seasonal tax return preparer for a national tax advisory company.
Adams is scheduled to make his initial court appearance today before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison for each wire fraud count, 10 years in prison for each money laundering count, 5 years in prison for each tax evasion count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.
IRS-Criminal Investigation is investigating the case with substantial assistance from the Alaska State Troopers.
Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney George Tran of the District of Alaska are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former City Treasurer Indicted for Wire Fraud, Money Laundering, and Tax EvasionRead the Press Release
ANCHORAGE – A former city treasurer was arrested this week after a federal grand jury returned an indictment charging him with wire fraud, money laundering, and tax evasion.
The indictment charges that from 2015 to 2022, Jess George Adams of Willow embezzled more than $1.16 million from the City of Houston in Alaska and from a Wasilla-based equipment company.
The indictment alleges that from 2015 through 2018, Adams was the Treasurer for the City of Houston, entrusted with bookkeeping responsibilities and administrative access to the City’s accounting records and software. Adams allegedly used this access to direct electronic transfers of funds from the City’s bank account to his personal account, maintained by Adams to hide the embezzled funds. It is further alleged that Adams used fictitious entries in the City’s accounting software to make it appear as though these payments were made for legitimate business expenses.
In October 2018, the City of Houston allegedly placed Adams on administrative leave, and he resigned his position in November 2018. A year later, Adams allegedly was employed as a bookkeeper by an equipment company, where he exercised control over the company’s accounting records and software. The indictment charges that, using this access, Adams directed electronic transfers of funds from the company’s bank account to his other personal accounts at multiple banks, maintained by Adams to hide the embezzled funds. To conceal his activity, Adams allegedly used fictitious entries in the company’s accounting software to make it appear as though these funds were transferred for the payment of legitimate business expenses.
Adams allegedly laundered the embezzled money he obtained from the equipment company by making several wire transfers from his personal bank account to other accounts, each at a value greater than $10,000.
The indictment further charges that in another attempt to conceal his embezzlement and evade the assessment of income taxes, Adams filed false individual income tax returns for tax years 2016 through 2021, which did not disclose the additional income he diverted to himself. According to the indictment, Adams was a former seasonal tax return preparer for a national tax advisory company.
Adams is scheduled to make his initial court appearance today before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison for each wire fraud count, 10 years in prison for each money laundering count, 5 years in prison for each tax evasion count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker for the District of Alaska and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case with substantial assistance from the Alaska State Troopers.
Assistant U.S. Attorney George Tran for the District of Alaska and Trial Attorney Boris Bourget of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Final defendant in Skagit County drug arrest sentenced to 72 months in prisonRead the Press Release
Seattle – A 39-year-old Mount Vernon, Washington, resident was sentenced today in U.S. District Court in Seattle to 72 months in prison for possessing dangerous drugs and guns on two separate occasions, announced U.S. Attorney Nick Brown. Steven Lopez Ruiz has been in custody since his arrest on March 14, 2022.
According to records filed in the case, Ruiz was first encountered by law enforcement on March 1, 2022, in the driver’s seat of a car that contained fentanyl laced pills, methamphetamine, and two firearms. Just two weeks later, on March 14, 2022, law enforcement stopped a car in which Ruiz was riding. Ruiz attempted to run from police but was apprehended. On that occasion, he possessed over 1,000 fentanyl pills, as well as heroin.
Ruiz was prosecuted along with the car’s driver, Santos Gutierrez-Fosella and a second passenger, Robert Johnny. Gutierrez-Fosella was held responsible for some 89,000 fentanyl pills in the car and was sentenced to ten years in prison. In January 2023, Robert Johnny was sentenced to six years in prison for his role in the case.
In asking for a seven-year prison sentence, Assistant United States Attorney Miriam Hinman wrote to the court, “Ruiz has committed serious offenses that pose a danger to the public. He has received substantial sentences for prior drug-trafficking and violence, and yet he was not deterred from engaging in the instant offense. He also attempted to flee from law enforcement in this case. Ruiz’s history of drug-trafficking, unlawful firearm possession, and physical violence, and his lack of respect for the law and for law enforcement, require a significant prison sentence in order to achieve deterrence and protect the public.”
The case was investigated by the Skagit County Interlocal Drug Enforcement Unit, Homeland Security Investigations (HSI), the Bureau of Indian Affairs, the Swinomish Police Department, and the Mount Vernon Police Department.
The case was prosecuted by Assistant United States Attorney Miriam Hinman.
Final Defendant Sentenced for Million-Dollar Credit Card Fraud Scheme Involving Arlington Coffee ShopRead the Press Release
ALEXANDRIA, Va. – Two Washington D.C. women and a Clinton, Maryland, man were sentenced for their roles in a conspiracy to commit bank fraud.
According to court documents, from at least May 2016 until Oct. 2016, Adiam Berhane, 50, conspired to carry out a fraud scheme with Tiffany Younger, 51, and Keith Lemons, 56, involving stolen credit card information that was used to purchase gift cards, expensive luxury goods, and other items from local retail stores. Berhane would obtain stolen identities of residents of the Washington, D.C. metropolitan area and elsewhere for the creation of fraudulent credit cards. The fraud caused over hundreds of thousands of dollars in losses to area retailers and financial institutions.
Younger and Lemons were recruited by Berhane to make purchases using fraudulent credit cards. As part of the scheme, items purchased with victims’ credit card information would sometimes be returned for refunds to bank accounts that Berhane controlled. In addition to fraudulently purchasing items and receiving fraudulent refund proceeds to her bank accounts, Berhane used fraudulent payment cards to purchase gift cards at retail stores which were then redeemed at her business, Caffe Aficionado, in Arlington. More than a third of Caffe Aficionado’s income from June 2013 to July 2016 came from a pattern of highly unusual redemptions of American Express gift cards, with the pattern beginning several months before Caffe Aficionado opened in approximately October 2013.
Following a December 2022 jury trial, Berhane was convicted of multiple charges of conspiracy to commit bank fraud, bank fraud, trafficking in unauthorized access devices, aggravated identity theft, unlawful possession of 15 or more access devices, and possession of access device-making equipment with intent to defraud.
On March 15, Berhane was sentenced to 10 years in prison for her role in the conspiracy. On March 15, Lemons was sentenced to time served and six months of home confinement for his role. On April 5, Younger was sentenced to 2 years of probation.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Andy Penn, Arlington County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
This case was prosecuted with the assistance of the Montgomery County Police Department, the FBI Cyber Task Force, the U.S. Postal Office of the Inspector General, the U.S. Secret Service, and the U.S. Capitol Police.
Assistant U.S. Attorneys Bibeane Metsch and Jonathan S. Keim prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:20-cr-25, 1:22-cr-9, and 1:21-cr-27.
Federal Court Orders Forfeiture of $826K in Funds Used in Attempt to Export Dual-Use High Precision Jig Grinder to RussiaRead the Press Release
An investigation into the attempted smuggling of a dual-use export-controlled item to Russia in violation of United States export laws and regulations has resulted in the forfeiture of approximately $826,000.
U.S. Attorney Vanessa Roberts Avery; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Andrew Adams, Director of Task Force KleptoCapture; Acting Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI), New England; Special Agent in Charge Rashel D. Assouri of the U.S. Department of Commerce’s Office of Export Enforcement, Boston; and Special Agent in Charge Robert Fuller of the FBI New Haven Division made the announcement.
As alleged in court documents and statements made in court, beginning in 2018, operators of a Latvia-based corporation conspired with the operator of By Trade OU, an Estonia-based company, as well as individuals in Russia and a Russia-based company, to violate U.S. export laws and regulations and smuggle a jig grinder that was manufactured in Connecticut to Russia. A jig grinder is a high-precision grinding machine system that does not require a license to export to European Union countries, but does require a license for export and reexport to Russia because of its potential application in nuclear proliferation and defense programs. At no time did the defendants apply for, receive or possess a license of authorization from the U.S. Department of Commerce to export or reexport the jig grinder to Russia, as required by the Export Control Reform Act of 2018 and the Export Administration Regulations (“EAR”), which restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to U.S. foreign policy and national security.
U.S. authorities, working with Latvian authorities, intercepted the jig grinder in Riga, Latvia, before it was to be shipped to Russia.
Several individuals and companies involved in this alleged scheme have been charged by indictment in the District of Connecticut with conspiracy, violation of the Export Control Reform Act, smuggling goods from the United States, and international money laundering conspiracy offenses.
On December 1, 2022, By Trade OU pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, and one count of international money laundering conspiracy. In pleading guilty, By Trade OU admitted that it received funds from a Russian company, identified in the indictment as “Company B,” to purchase a jig grinder on its behalf from a Latvian company that had arranged to purchase the jig grinder from the Connecticut manufacturer.
On March 29, 2023, in a related civil forfeiture action, U.S. District Judge Victor A. Bolden ordered the forfeiture of $484,696 that had been delivered to the Connecticut manufacturer as part of the attempted purchase of the jig grinder. On April 4, 2023, in association with the sentencing of By Trade OU, Judge Bolden ordered the forfeiture of an additional €312,192.44 (approximately $342,000) seized from By Trade OU.
As to the other defendants charged in the indictment, U.S. Attorney Avery stressed that an indictment is merely an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation is being conducted by HSI field offices in New Haven, Portland (Ore.), and the Hague, Netherlands; the U.S. Department of Commerce’s Office of Export Enforcement in Boston; and the FBI. The Prosecutor-General’s Office of the Republic of Latvia, the Prosecutor General’s Office of the Republic of Estonia, Latvian Tax and Customs Police, Estonian Tax and Customs Board, and the Latvian State Police are assisting the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Konstantin Lantsman, and David Nelson of the District of Connecticut, and Trial Attorney Matthew Anzaldi of the Justice Department’s National Security Division. The Justice Department’s Office of International Affairs is providing valuable assistance.
The investigation was coordinated with the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Federal Court Orders Forfeiture of $826K in Funds Used in Attempt to Export Dual-Use High Precision Jig Grinder to RussiaRead the Press Release
An investigation into the attempted smuggling of a dual-use export-controlled item to Russia in violation of United States export laws and regulations has resulted in the forfeiture of approximately $826,000.
As alleged in court documents and statements made in court, beginning in 2018, operators of a Latvia-based corporation conspired with the operator of By Trade OU, an Estonia-based company, as well as individuals in Russia and a Russia-based company, to violate U.S. export laws and regulations and smuggle a jig grinder that was manufactured in Connecticut to Russia. A jig grinder is a high-precision grinding machine system that does not require a license to export to European Union countries but does require a license for export and reexport to Russia because of its potential application in nuclear proliferation and defense programs. At no time did the defendants apply for, receive or possess a license of authorization from the U.S. Department of Commerce to export or reexport the jig grinder to Russia, as required by the Export Control Reform Act of 2018 and the Export Administration Regulations (EAR), which restrict the export of items that could make a significant contribution to the military potential of other nations or that could be detrimental to U.S. foreign policy and national security.
U.S. authorities, working with Latvian authorities, intercepted the jig grinder in Riga, Latvia, before it was to be shipped to Russia.
Several individuals and companies involved in this alleged scheme have been charged by indictment in the District of Connecticut with conspiracy, violation of the Export Control Reform Act, smuggling goods from the United States and international money laundering conspiracy offenses.
On Dec. 1, 2022, By Trade OU pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, and one count of international money laundering conspiracy. In pleading guilty, By Trade OU admitted that it received funds from a Russian company, identified in the indictment as “Company B,” to purchase a jig grinder on its behalf from a Latvian company that had arranged to purchase the jig grinder from the Connecticut manufacturer.
On March 29, in a related civil forfeiture action, U.S. District Judge Victor A. Bolden ordered the forfeiture of $484,696 that had been delivered to the Connecticut manufacturer as part of the attempted purchase of the jig grinder. On April 4, 2023, in association with the sentencing of By Trade OU, Judge Bolden ordered the forfeiture of an additional €312,192.44 (approximately $342,000) seized from By Trade OU.
U.S. Attorney Vanessa Roberts Avery for the District of Connecticut; Director Andrew Adams of Task Force KleptoCapture; Acting Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI), Boston; Special Agent in Charge Rashel D. Assouri of the U.S. Department of Commerce’s Office of Export Enforcement, Boston; and Special Agent in Charge Robert Fuller of the FBI New Haven Field Office made the announcement.
This investigation is being conducted by HSI Field Offices in New Haven, Connecticut; Portland Oregon; and the Hague, Netherlands; the U.S. Department of Commerce’s Office of Export Enforcement in Boston; and the FBI. The Prosecutor-General’s Office of the Republic of Latvia, the Prosecutor General’s Office of the Republic of Estonia, Latvian Tax and Customs Police, Estonian Tax and Customs Board and the Latvian State Police are assisting the investigation.
Assistant U.S. Attorneys Rahul Kale, Konstantin Lantsman and David Nelson for the District of Connecticut and Trial Attorney Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Estonian National Charged with Helping Russian Military Acquire U.S. Electronics, Including Radar Components; Sought-Computer Hacking SoftwareRead the Press Release
An eighteen-count indictment was unsealed today in Brooklyn charging Andrey Shevlyakov, an Estonian national, with conspiracy and other charges related to procuring U.S.-made electronics on behalf of the Russian government and military.
Shevlyakov was arrested on March 28, 2023 in Estonia. As alleged in the indictment and other court filings, at the time of his arrest, the Estonian seized inbound shipments addressed to Shevlyakov’s front companies, including one that contained approximately 130 kilograms (286 pounds) of radio equipment.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Special Agent in Charge, FBI Houston and Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office announced the charges.
“As alleged, for more than a decade, the defendant has been acquiring sensitive electronics from U.S. manufacturers on behalf of the Russian government, in defiance of U.S. export controls,” stated United States Attorney Peace. “Our Office will not relent in its efforts to stop those who unlawfully procure U.S. technology for Russia or any other sanctioned countries, entities or individuals.”
Mr. Peace expressed his appreciation for Task Force KleptoCapture, the Department of Justice’s Office of International Affairs, and the Estonian Internal Security Service (KAPO) for their valuable assistance.
“For years, Mr. Shevlyakov’s elaborate web of deceit allowed him to allegedly procure sensitive American-made electronics on behalf of the Russian military,” said FBI Houston Special Agent in Charge James Smith. “His illegal acquisitions of sophisticated U.S. technology endangered citizens in both Ukraine and the United States. FBI Houston will continue to work with our valued international partners, especially the Estonian Internal Security Service (KAPO), to investigate and disrupt actors who illicitly support the unprovoked invasion of Ukraine by Russian armed forces.”
“As these actions have proven, BIS will continue to hunt down and bring to justice those who harm our national security and illicitly supply the Russian regime,” said Special Agent in Charge McClish.
As alleged in the indictment and other court filings, Shevlyakov procured sensitive electronics from U.S. manufacturers on behalf of Russian end-users, including defense contractors and other Russian government agencies. Most of these items would have been unavailable to Russian end-users if ordered directly for shipment to Russia.
The items that Shevlyakov purchased included low-noise pre-scalers and synthesizers (used to conduct high-frequency communications) and analog-to-digital converters, which can be found in most defense systems that must respond to environmental conditions, including software-defined radio, avionics, missiles, and electronic warfare systems. Shevlyakov’s communications with Russia-based customers included explicit discussions of whether there were “military” goods in certain orders.
Shevlyakov also attempted to acquire computer hacking tools. In May 2020, one of Shevlyakov’s front companies exchanged messages with a Russia-based individual about acquiring a licensed copy of Metasploit Pro, a U.S.-made software tool that is used to penetrate computer networks. Metasploit is intended for use in assessing network vulnerabilities, but is also widely used by computer hackers. A license to use Metasploit Pro costs approximately $15,000. In the email, the individual asked Shevlyakov’s front company to acquire Metasploit and detailed a history of prior failed attempts to acquire the software through third parties in countries outside Russia. The individual added that the software was “dual use” and that accordingly, “sales to Russia are virtually impossible.” Thus, the individual said, “we cannot reveal the end user, nor can we identify ourselves.” On or about June 1, 2020, the front company email address wrote back, listing prices for different versions of Metasploit Pro.
To deliver his goods, Shevlyakov ran an intricate logistics operation involving frequent smuggling trips across the Russian border by himself and others. Shevlyakov engaged in this conduct despite being listed on a Department of Commerce-maintained list (the “Entity List”) that designates individuals and companies who are barred from exporting items from the United States without a license. Shevlyakov was added to the Entity List in 2012, after the U.S. government identified him as a procurement agent charged with pursuing U.S. technology for Russian government and military end users. Shevlyakov used false names and a web of front companies to evade the Entity List’s restrictions.
If convicted, the defendant faces a maximum of 20 years’ imprisonment. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Alexander Mindlin is in charge of the prosecution, along with Trial Attorney Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Mary Clare McMahon. The Office thanks the Estonian authorities for their valuable support.
The Defendant:
ANDREY SHEVLYAKOV
Age: 45
Tallinn, EstoniaE.D.N.Y. Docket No. 22-CR-490 (RPK)
Dunklin County Man Sentenced to 15 Years in Prison for Methamphetamine and Gun OffensesRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Wednesday sentenced John Andrew Schoolcraft, 32, of Kennett, Missouri, to serve 15 years in federal prison for the offenses of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
At a guilty plea hearing in January, Schoolcraft admitted that beginning in May of 2022 and continuing through June 23, 2022, he and others were involved in distributing methamphetamine throughout Dunklin County, Missouri. The Missouri State Highway Patrol utilized confidential informants and audio and video recording devices to conduct controlled drug buys of methamphetamine from Schoolcraft and others involved. The case culminated in the execution of a search warrant at Schoolcraft’s residence in Kennett where officers seized over four pounds of methamphetamine, a loaded Glock, .45 caliber semi-automatic pistol and $2,785 in cash.
This case was investigated by the Missouri State Highway Patrol, assisted by the Southeast Missouri Drug Task Force. Assistant U.S. Attorney Julie Hunter handled the prosecution for the government.
- Detroit Man Sentenced to 5 Years for Role in Drug Conspiracy
Dentist Pleads Guilty to Tax EvasionRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Frantz Brignol has pleaded guilty to one count of tax evasion and one count of failing to file a tax return. Brignol faces up to six years in federal prison on the offenses. A federal grand jury had returned the indictment against Brignol on November 22, 2022. A sentencing date has not yet been set.
According to the court records, Brignol, a dentist, had amassed almost $900,000 in tax liabilities to the IRS. Between approximately 2014 and 2020, Brignol evaded his tax payments by hiding hundreds of thousands of dollars in his mother’s bank accounts (for which he had signatory authority), trading funds overseas, and failing to disclose a bank account to the IRS. Despite an annual income of more than $200,000 in the calendar year 2020, Brignol also failed to file an income tax return as required under federal law.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Dealer of Fentanyl-Laced Heroin That Resulted in the Overdose Death of Actor Michael K. Williams Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that IRVIN CARTAGENA, a/k/a “Green Eyes,” pled guilty today to conspiring to distribute heroin, fentanyl, and fentanyl analogue. As part of the conspiracy, CARTAGENA distributed the fentanyl-laced heroin that resulted in the death of Michael K. Williams. CARTAGENA pled guilty earlier today before U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “Irvin Cartagena sold fentanyl-laced heroin in broad daylight in New York City, feeding addiction and causing tragedy. In doing so, he dealt the fatal dose that killed Michael K. Williams. This Office and our law enforcement partners will continue to hold accountable the dealers who push this poison, exploit addiction, and cause senseless death in our community.”
According to the allegations in the complaints, court filings, and statements made in Court:
Between at least in or about August 2020 and February 2022, a drug trafficking organization (the “DTO”) was operating in the vicinity of 224 South 3rd Street in the Williamsburg neighborhood of Brooklyn, New York. The DTO sold heroin laced with fentanyl and a fentanyl analogue on the street in front of, and from an apartment inside of, the apartment building located at 224 South 3rd Street, among other places. On or about September 5, 2021, members of the DTO sold Michael K. Williams heroin, which was laced with fentanyl and a fentanyl analogue, with CARTAGENA executing the hand-to-hand transaction. Williams died as a result of using that fentanyl-laced heroin. Despite knowing that Williams died after being sold the DTO’s product, CARTAGENA and his co-conspirators continued to sell fentanyl-laced heroin in broad daylight amidst residential apartment buildings in Brooklyn and Manhattan.
* * *
CARTAGENA, 39, of Brooklyn, New York, pled guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl analogue, fentanyl, and heroin, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. As part of his guilty plea, CARTAGENA stipulated that the substances he conspired to distribute and possess with intent to distribute resulted in the death of Michael K. Williams.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the New York City Police Department and the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts. Mr. Williams also thanked the Organized Crime Drug Enforcement Task Forces New York Strike Force, the United States Marshals Service, the New York/New Jersey Regional Fugitive Task Force, and the New York Division of the Drug Enforcement Administration for their assistance in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Micah Fergenson and David Robles are in charge of the prosecution.
Criminal Marketplace Disrupted in International Cyber OperationRead the Press Release
The Justice Department announced today a coordinated international operation against Genesis Market, a criminal online marketplace that advertised and sold packages of account access credentials – such as usernames and passwords for email, bank accounts, and social media – that had been stolen from malware-infected computers around the world.
“Working across 45 of our FBI Field Offices and alongside our international partners, the Justice Department has launched an unprecedented takedown of a major criminal marketplace that enabled cybercriminals to victimize individuals, businesses, and governments around the world,” said Attorney General Merrick B. Garland. “Our seizure of Genesis Market should serve as a warning to cybercriminals who operate or use these criminal marketplaces: the Justice Department and our international partners will shut down your illegal activities, find you, and bring you to justice.”
“Yesterday, the Department of Justice and its partners dismantled the Genesis Market and arrested many of its users around the world,” said Deputy Attorney General Lisa O. Monaco. “Genesis falsely promised a new age of anonymity and impunity, but in the end only provided a new way for the Department to identify, locate, and arrest on-line criminals. The Department of Justice is shining a light on the internet’s darkest corners – in the last year alone, our agents, prosecutors, and partners have dismantled the darknet’s largest marketplaces – Hydra Market, BreachForums, and now Genesis. Each takedown is yet another blow to the cybercrime ecosystem.”
Since its inception in March 2018, Genesis Market has offered access to data stolen from over 1.5 million compromised computers around the world containing over 80 million account access credentials. Account access credentials advertised for sale on Genesis Market included those connected to the financial sector, critical infrastructure, and federal, state, and local government agencies. Genesis Market was also one of the most prolific initial access brokers (IABs) in the cybercrime world. IABs attract criminals looking to easily infiltrate a victim’s computer system. Genesis Market offered for sale the type of access sought by ransomware actors to attack computer networks in the United States and around the world, and published private-sector reports indicate that they indeed were used by ransomware actors to attack such systems.
Genesis Market was user-friendly, providing users with the ability to search for stolen access credentials based on location and/or account type (e.g., banking, social media, email, etc.). In addition to access credentials, Genesis Market obtained and sold device “fingerprints,” which are unique combinations of device identifiers and browser cookies that circumvent anti-fraud detection systems used by many websites. The combination of stolen access credentials, fingerprints, and cookies allowed purchasers to assume the identity of the victim by tricking third party websites into thinking the Genesis Market user was the actual owner of the account.
Genesis Market users were located all over the world. Federal law enforcement has worked to identify prolific users of Genesis Market who purchased and used stolen access credentials to commit fraud and other cybercrimes. This effort resulted in hundreds of leads being sent to FBI field offices throughout the United States, as well as to foreign law enforcement partners. Further, as part of this operation, dubbed Operation Cookie Monster, law enforcement seized 11 domain names used to support Genesis Market’s infrastructure pursuant to a warrant authorized by the U.S. District Court for the Eastern District of Wisconsin.
“The operation being announced today is the direct result of the hard work, dedication, and exceptional collaborative efforts of the FBI and its partners around the globe,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “Along with investigative partners and our Justice Department colleagues, my office remains committed to using all available tools to protect individuals from cybercriminals like those who operate these types of online marketplaces.”
“Today’s takedown of Genesis Market is a demonstration of the FBI’s commitment to disrupting and dismantling key services used by criminals to facilitate cybercrime,” said FBI Director Christopher Wray. “The work in this case is a great example of the FBI’s ability to leverage our technical capabilities and work shoulder-to-shoulder with our international partners to take away the tools cyber criminals rely on to victimize people all across the world.”
The FBI Milwaukee Field Office investigated the case, with assistance from 44 other field offices, the U.K. National Crime Agency, Italy’s Polizia de Stato, Police of Denmark, Australian Federal Police, Royal Canadian Mounted Police, Canada’s Sûreté du Québec, Romanian Police, Cybercrime Sub-directorate for French judicial police, Spain’s Policia Nacional, Spain’s Guardia Civil, Germany’s Federal Criminal Police Service, Swedish Police Authority, Poland’s Central Bureau for Combating Cybercrime, Dutch National Police, Finland’s National Bureau of Investigation, Switzerland’s Office of the Attorney General, Swiss Federal Police, Estonia’s Prosecutor General’s Office, Iceland’s Metropolitan Police, New Zealand Police, Eurojust, and Europol.
The Department appreciates the assistance provided by authorities in Bulgaria and Latvia in response to Mutual Legal Assistance requests.
Trial Attorneys Benjamin Proctor and Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are handling the investigation. The Justice Department’s Office of International Affairs provided significant assistance.
Victim credentials obtained over the course of the investigation have been provided to the website Have I Been Pwned, which is a free resource for people to quickly assess whether their access credentials have been compromised (or “pwned”) in a data breach or other activity. Victims can visit HaveIBeenPwned.com to see whether their credentials were compromised by Genesis Market so that they can know whether to change or modify passwords and other authentication credentials that may have been compromised.
If you have been active on Genesis Market, in contact with Genesis Market administrators, or have been a victim and need to report, please email the FBI at [email protected].
Court Sentences 15th Defendant Involved in Southeast Washington Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – Rico Griffin, 34, of Washington, D.C., was sentenced today to 66 months in prison for his role in a drug trafficking network based in Southeast Washington that sold cocaine, crack cocaine, Fentanyl, PCP, and marijuana, announced United States Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office Criminal and Cyber Crime Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department (MPD).
Griffin pleaded guilty on January 25, 2023, to conspiracy to distribute and possess with the intent to distribute cocaine base. Griffin was indicted with 16 co-defendants (listed below). All but two of the seventeen defendants have pleaded guilty and received prison terms ranging from 24 months to 114 months based on their criminal conduct and criminal histories.
The case stems from an investigation by the MPD Narcotics and Special Investigations Division and the FBI into the “MLK Crew” - a group of individuals who were operating an open-air drug market in and around the 2900 block of Martin Luther King Jr. Avenue, SE, Washington D.C. The investigation began in response to numerous citizen complaints about rampant drug trafficking and accompanying incidents of violence in the area. In addition to numerous citizen complaints, MPD targeted this area as one of the most notorious in the city in terms of recent shootings and shots fired, as well as for the area’s high numbers of arrests—particularly offenses involving drugs and firearms.
“Our Office, the Metropolitan Police Department, and the FBI are focused on the couple dozen blocks across our District that are magnets for violence,” said US Attorney Graves. “There is no doubt that the blocks in which the MLK Mellon Crew operated were among the most dangerous. We know that drug trafficking attracts violence and we saw, after dismantling this crew, a substantial decrease in shooting incidents in the months after the incident. Temporarily breaking the cycle of violence offers a valuable window to restore order and to provide the community the support it needs to heal.”
“The defendants wreaked havoc on the residents of Congress Heights by running an open-air drug market built on violence, often commandeering local businesses to conduct illegal sales,” said SAC Jacobs. “As this case demonstrates, the FBI through its commitment to partnerships will aggressively pursue data-driven intelligence and public tips to dismantle the violent gangs terrorizing our communities.”
“There is no excuse for the fear that the MLK Mellon Crew spread across our community,” said Chief Contee. “Their drug trafficking and violence has impacted our entire city. Now, thanks to the tireless work of our officers, detectives, and law enforcement partners, our community can rest easier knowing that these individuals are being held accountable.”
As part of its investigation, MPD and FBI began conducting surveillance, obtaining search warrants, and making controlled buys of narcotics from suspected members of the conspiracy.
The investigation revealed that MLK Crew members openly engaged in the sale of various drugs (including PCP, crack, fentanyl, and marijuana) and took over the area and, effectively, some of the neighborhood’s businesses. MLK Crew members would often go into the neighborhood businesses to complete sales and constantly loitered outside of these businesses to engage in sales. As part of its investigation, MPD and FBI obtained video of defendants openly conducting narcotics transactions in these businesses and even displaying firearms. Throughout the case, law enforcement seized at least 10 firearms (many of which were privately manufactured firearms or “ghost guns”) from MLK crew members and/or stash houses and a sizeable quantity of various narcotics. The MLK Crew’s drug trafficking contributed to numerous incidents of drug-related violence in and around the 2900 Block of MLK Avenue, including multiple assaults, shootings, robberies, and murders—most notably, the murder of a six-year-old girl who was the daughter of one of the co-defendants in this case.
In July of 2021, a few months after opening the investigation, MPD and FBI arrested 11 initial defendants and seized 10 firearms, along with PCP, crack cocaine, powder cocaine, heroin, pills, and over $2,500 in cash. The additional six defendants were charged in September 2021 and were arrested shortly thereafter; however, Rico Griffin, remained a fugitive until January 3, 2023. After his arrest, Rico Griffin quickly pleaded guilty and was sentenced today.
The prosecutions followed a joint investigation by the FBI Washington Field Office’s Cross Border Safe Streets Task Force in partnership with MPD’s Narcotics and Special Investigations (NSID) Violence Reduction Unit (VRU). This partnership targets the most egregious and violent street crews operating in the District of Columbia. Assistance was provided by the U.S. Drug Enforcement Administration, the U.S. Park Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorneys David Henek and Andy Wang of the of the Violence Reduction and Trafficking Offenses (VRTO) Section of the U.S. Attorney’s Office for the District of Columbia.
The investigation had the sponsorship and support of the federal Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
DEFENDANT
STATUS
Ricky Lyles, 42, Accokeek, MD
sentenced to 114 months for conspiracy to distribute 16.8-22.4 grams of crack cocaine and possessing a firearm
Nico Griffin, 32, Washington, DC
sentenced to 37 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Dandre Shorter, 28, Washington, DC
sentenced to 37 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Wesley Leake, 32, Washington, DC
sentenced to 40 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Leon Lindsay, 37, Washington, DC
sentenced to 57 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Dezmond Cunningham, 28, Washington, DC
sentenced to 48 months conspiracy to distribute 22.4-28 grams of crack cocaine
Divine Chappell, 26, Washington, DC
sentenced to 76 months for possession of a firearm in furtherance of drug trafficking and conspiracy to distribute crack cocaine
Shawn Wooden, 40, Washington, DC
trial scheduled for October 16
Barry Tyson, 20, Washington, DC
sentenced to 73 months of incarceration for possession of a firearm in furtherance of drug trafficking and conspiracy to distribute crack cocaine
Delonta Chappell, 35, Washington, DC
sentenced to 48 months for conspiracy to distribute 28-112 grams of crack cocaine
Anthony Graves, 32, Washington, DC
sentenced to 27 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Deshawn Loggins, 21, Temple Hills, MD
sentenced to 42 months for conspiracy to distribute 28-112 grams of crack cocaine
Kevonte Randall, 25, Washington, DC
sentenced to 46 months for conspiracy to distribute 22.4-28 grams of crack cocaine and possessing a firearm
Corenzo Mobery, 40, Washington, DC
trial scheduled for October 16th.
Rico Griffin, 34, Washington, DC
66 months in prison for conspiracy to distribute 22.4-28 grams of crack cocaine
Shahborne Scales, 32, Washington, DC
sentenced to 66 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Luther McDuffie, 35, Washington, DC
sentenced to 24 months for conspiracy to distribute 22.4-28 grams of crack cocaine
Convicted Felon Pleads Guilty to Possession of a Firearm After Being Identified on SnapChatRead the Press Release
CONCORD – A Manchester man, Reda Shehabeldin, 26, pleaded guilty in federal court to one count of possession of a firearm by a prohibited person, U.S. Attorney Jane E. Young announces.
U.S. District Court Judge Samantha Elliott scheduled sentencing for July 12, 2023. Mr. Shehabeldin was indicted on January 10, 2023.
On July 15, 2022, Shehabeldin was identified—in a video posted by another individual on SnapChat—holding a Glock, model 30 Gen 4 .45 caliber subcompact pistol. At the time, he was a convicted felon. Hillsborough County Superior Court convicted Shehabeldin in January 2022 for reckless conduct, a class B felony offense under the state laws of New Hampshire.
The charging statute provides a sentence of no greater than 15 years in prison, three years of supervised release, and a maximum fine of $250,000.00. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) and the Manchester Police Department. Assistant U.S. Attorneys John Kennedy and Geoffrey Ward are prosecuting the case.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results.
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Clarksville Man Sentenced to Federal Prison for Child Exploitation ChargesRead the Press Release
NASHVILLE – A Clarksville, Tennessee, man was sentenced to federal prison yesterday for child exploitation charges, announced U.S. Attorney Henry C. Leventis.
Kevin Figueroa, 33, was sentenced to 10 years in prison concurrently on each count of attempted coercion and enticement of a minor to engage in unlawful sexual activity and attempted transfer of obscene material to a minor. Figueroa was sentenced to an additional 30 months in prison for destruction or removal of evidence to prevent search or seizure, to run consecutively, and will serve 10 years of supervised release upon his release from prison.
Figueroa was indicted in April 2022, after contacting an undercover FBI agent who was conducting an online covert investigation using a popular mobile dating application. The undercover profile indicated that the persona of the agent was a 15-year-old female living in Clarksville. Figueroa, using the profile “Spike tkro,” continued to message the agent, even after confirming the persona was a 15-year-old female and sent a lewd photo and message before exchanging phone numbers with the agent. In subsequent communications, Figueroa proposed meeting with the agent to engage in sexual activity and arranged a meeting in November 2019, for which Figueroa failed to show.
The following month, Figueroa initiated contact with the agent on a different dating app and continued to communicate with who he believed to be the same 15-year-old female. Another meeting was subsequently arranged for March 17, 2020, at an apartment building in Clarksville for the purpose of engaging in sexual activity. When Figueroa arrived at the meeting location, he was met by FBI agents.
While being interviewed by FBI agents, Figueroa learned that they intended to seize his phone and surreptitiously deleted apps from his phone.
Figueroa was found guilty of the charges after a bench trial before Chief U.S. District Judge Waverly D. Crenshaw, Jr., in September 2022.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Monica R. Morrison and Robert E. McGuire.
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City of Chicago Held in Violation of Americans with Disabilities ActRead the Press Release
A federal judge in Chicago held the City of Chicago liable for violating the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act by failing to provide accessible pedestrian signals at signalized intersections throughout the city to those who are blind or have low vision.
In April of 2021, the Justice Department moved to intervene in a disability discrimination lawsuit that people with visual disabilities brought against the City under the ADA and the Rehabilitation Act. The United States’ complaint in intervention alleged that the city fails to provide people who are blind, have low vision or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street for sighted pedestrians.
Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities, specifically identifying the need for such installation in multiple city documents. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,800 intersections, the United States’ suit alleged that — at the time it intervened — fewer than one percent of those were equipped with APSs for people who are blind or have low vision.
On March 31, U.S. District Judge Elaine E. Bucklo sided with the United States and the private plaintiffs in a decision on both sides’ motions for summary judgment, holding the city in violation of the ADA and Section 504 of the Rehabilitation Act. The court found that the city had provided APS at only a “miniscule portion of the whole,” and thus had failed “to provide ‘meaningful access’ to its network of existing facilities and to ensure that newly constructed signals are designed and constructed in such a manner as to be ‘readily accessible’ by blind individuals.”
“Federal law offers people with visual disabilities the promise of full participation in community life, and safely navigating city streets is a critical part of that,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue pushing for a remedy that fully addresses the discrimination faced by blind people in Chicago.”
“As previously stated, the U.S. Attorney’s Office took action in this case in order to ensure that Chicagoans with disabilities are provided equal access to city services, particularly services where the primary focus is on public safety,” said Acting U.S. Attorney Pasqual for the Northern District of Illinois. “Our office remains committed to standing up for the rights of all those who reside in and visit the City of Chicago and all other communities across the Northern District of Illinois. We look forward to working with the City of Chicago to identify an appropriate remedy for the future.”
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.
City of Chicago Held in Violation of Americans with Disabilities ActRead the Press Release
A federal judge in Chicago held the City of Chicago liable for violating the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act by failing to provide accessible pedestrian signals at signalized intersections throughout the city to those who are blind or have low vision.
In April of 2021, the Justice Department moved to intervene in a disability discrimination lawsuit that people with visual disabilities brought against the City under the ADA and the Rehabilitation Act. The United States’ complaint in intervention alleged that the city fails to provide people who are blind, have low vision or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street for sighted pedestrians.
Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities, specifically identifying the need for such installation in multiple city documents. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,800 intersections, the United States’ suit alleged that — at the time it intervened — fewer than one percent of those were equipped with APSs for people who are blind or have low vision.
On March 31, U.S. District Judge Elaine E. Bucklo sided with the United States and the private plaintiffs in a decision on both sides’ motions for summary judgment, holding the city in violation of the ADA and Section 504 of the Rehabilitation Act. The court found that the city had provided APS at only a “miniscule portion of the whole,” and thus had failed “to provide ‘meaningful access’ to its network of existing facilities and to ensure that newly constructed signals are designed and constructed in such a manner as to be ‘readily accessible’ by blind individuals.” The case is being handled for the U.S. Attorney’s Office by Assistant U.S. Attorneys Patrick Johnson and Sarah J. North as well as by the Civil Rights Division.
“Federal law offers people with visual disabilities the promise of full participation in community life, and safely navigating city streets is a critical part of that,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue pushing for a remedy that fully addresses the discrimination faced by blind people in Chicago.”
“As previously stated, the U.S. Attorney’s Office took action in this case in order to ensure that Chicagoans with disabilities are provided equal access to city services, particularly services where the primary focus is on public safety,” said Acting U.S. Attorney Pasqual for the Northern District of Illinois. “Our office remains committed to standing up for the rights of all those who reside in and visit the City of Chicago and all other communities across the Northern District of Illinois. We look forward to working with the City of Chicago to identify an appropriate remedy for the future.”
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.